Vail stock surges on news of Q2 revenue increases, boosted dividend

BROOMFIELD — Vail Resorts Inc. (NYSE: MTN) saw stock prices surged Friday morning after the company announced higher-than-expected revenues for the second quarter of fiscal year 2019. The Broomfield-based ski resort company also announced that it would increase quarterly dividends by 20 percent.

Just before noon Friday, Vail’s stock was trading close to $217, up more than 7 percent for the day.

Total revenues were up $115 million, or 15.7 percent, to $849.6 million in the second quarter compared with the same period in 2018.

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Vail’s board of directors has approved bumping the quarterly dividend 20 percent from $1.47 per share to $1.76 per share beginning with the dividend payable on April 11 to shareholders of record as of March 27.

“We are pleased with our overall results for the quarter, with strong growth in visitation and spending compared to the prior year. In the pre-holiday period, destination guest visitation at our U.S. resorts was less than expected, which we attribute to guest concerns after two prior years of poor pre-holiday conditions,” Vail CEO Rob Katz said in a prepared statement. “Our destination guest visitation was largely in line with expectations during the key holiday weeks and through the remainder of January. Throughout the quarter, with the favorable conditions at our U.S. resorts, we saw strong visitation growth among our local guests, who are primarily pass purchasers.”