Vail Resorts Inc (NYSE:MTN) stock fell 0.57% (As on March 10, 11:17:37 AM UTC-4, Source: Google Finance) after the company reported second quarter results that fell short of analyst expectations and reduced its full-year guidance, citing historically challenging weather conditions across its Rocky Mountain resorts. The decline was driven by the lowest snowfall levels in more than 30 years for the company’s Colorado and Utah resorts, combined with warmer temperatures that reduced terrain availability. Despite a 13% drop in visitation, total lift revenue declined only 2.9%, supported by a 3% increase in North American pass sales revenue. Resort Reported EBITDA for the quarter decreased $38.4 million, or 8.3%, to $421.3 million compared to the prior year. Season-to-date through March 1, total skier visits were down 11.9% YoY, while total lift revenue declined 3.6%. Season-to-date ski school revenue was down 8.2% and dining revenue was down 8.6% compared to the prior year period. Retail/rental revenue for North American resort and ski area store locations was down 5.7% compared to the prior year period.

MTN in the second quarter of FY26 has reported the adjusted earnings per share of $5.87, missing the analysts’ estimates for the adjusted earnings per share of $6.25. The company had reported the adjusted revenue decline of 4.7 percent to $1.08 billion in the second quarter of FY26, missing the analysts’ estimates for revenue of $1.12 billion. This was primarily driven by the unfavorable weather conditions that impacted visitation and ancillary spending for both local and destination guests during the period. Compared to the prior year, total lift revenue declined 2.9%, despite visitation being down 13%, primarily as a result of 2025/2026 North American Pass Sales Revenue increasing 3% heading into the season.

Additionally, the company declared a quarterly dividend of $2.22 per share, payable April 9 to shareholders of record as of March 26. In addition to the shares repurchased in November, the Company repurchased an additional approximately 0.1 million shares in December, resulting in a total of approximately 0.3 million shares repurchased during the quarter at an average price of approximately $139 per share for a total of $45.0 million in the fiscal year to date period.

The company now expects fiscal 2026 net income of $144 million to $190 million and Resort Reported EBITDA of $745 million to $775 million. The midpoint of the EBITDA guidance of $760 million represents a significant reduction from previous expectations, attributed to persistent adverse weather conditions in the Rockies that continued to limit terrain availability.