Why Vail Resorts (MTN) Shares Are Falling Today

What Happened:

Shares of luxury ski resort company Vail Resorts (NYSE:MTN) fell 14.3% in the morning session after the company reported first quarter earnings results. Its EPS missed and its revenue fell short of Wall Street's estimates. Management attributed the weakness to "a combination of unfavorable conditions and broader industry normalization post-COVID following record visitation in the U.S. during the 2022-2023 ski season." These challenges drove the 3.2% decline in Skier visits during the quarter. Overall, the results could have been better.

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What is the market telling us:

Vail Resorts's shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. Moves this big are very rare for Vail Resorts and that is indicating to us that this news had a significant impact on the market's perception of the business.

Vail Resorts is down 20.2% since the beginning of the year, and at $168.15 per share it is trading 34.8% below its 52-week high of $258.04 from June 2023. Investors who bought $1,000 worth of Vail Resorts's shares 5 years ago would now be looking at an investment worth $710.29.

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