NEW YORK (TheStreet) -- Shares of Vail Resorts (MTN) - Get Report closed higher by 1.86% to $107.42 on Friday, ahead of the release of the company's fourth quarter earnings results, due out next Tuesday.
The Broomfield, CO-based mountain resort property owner is expected to report a fourth quarter net loss of $1.88 per share on revenue of $152.3 million.
Those totals are increases from the loss of $2.08 and $135.5 million in revenue the company generated for the year ago period.
Analysts polled by Zacks have a consensus long term price target of $114.25 per share on Vail Resorts.
Separately, TheStreet Ratings team rates VAIL RESORTS INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
We rate VAIL RESORTS INC (MTN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 46.07% is the gross profit margin for VAIL RESORTS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.02% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 13.1% when compared to the same quarter one year prior, going from $117.95 million to $133.41 million.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.42 is very weak and demonstrates a lack of ability to pay short-term obligations.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: MTN