Vail Resorts is hoping its stock price is like its ski business — it comes down, and then it goes back up.
Vail’s stock price fell almost 18 percent last Friday, starting the day at $258.60 per share and closing at $223.25.
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Vermont Community Newspaper Group
Vail Resorts is hoping its stock price is like its ski business — it comes down, and then it goes back up.
Vail’s stock price fell almost 18 percent last Friday, starting the day at $258.60 per share and closing at $223.25.
However, by Monday’s close, it was back up to $234.
Analysts think Friday was a blip, based on the company’s report that its losses in the last quarter were bigger than expected, and revenue gains were lower than expected.
Friday’s decline was the company’s biggest single-day percentage loss, surpassing the 17.3 percent drop in the stock price Nov. 14, 2008, when the Great Recession was taking hold of the nation’s economy. The stock price eventually bottomed out at $17.85 in March 2009, and burbled along for four years before beginning a surge that took the stock price from $68.86 in November 2013 to $223.27 in September 2017 and to $298.05 in August of this year.
Even with Friday’s drop to $223.25, the stock price was more than 12 times what it was back in 2009.
Vail Resorts reported a net loss of $107.8 million for the quarter ending Oct. 31, nearly quadruple the $28.4 million loss a year earlier.
Bloomberg Analytics said Vail’s recent acquisitions, including Crested Butte, and lagging sales in new season-pass offerings have been a drag on the company’s earnings and “will likely hurt its fiscal 2019 growth prospects.”
However, Bloomberg Analytics was upbeat about the company: “Its global resort network provides alternative destination options and is an added benefit to pass holders. Recent acquisitions further enhance the season passes’ value, helping Vail to secure its position as North America’s leading ski-resort operator.”
North American season pass sales for the 2018-19 season were up 21 percent through Dec. 2, according to the company, but revenue was up only 13 percent.
Still, that’s double-digit revenue growth.
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