Vail Resorts Trades Up Sharply on Q2 Results

Shares of ski-resort operator Vail Resorts

gapped higher on the open on Thursday and have continued to rise throughout the day. In afternoon trade the stock was last trading up a little less than 8 percent to above $61.00. Shares opened the day at $58.84. The catalyst for the rise in the stock was the company's fiscal second-quarter earnings results. The Broomfield, Colorado-based company missed Wall Street earnings per share estimates, but posted sales that were ahead of analysts' estimates. Net income for the second-quarter was $60.5 million or $1.65 per share, compared to $46.4 million or $1.27 per share, in last year's corresponding quarter. This missed Wall Street analysts' consensus EPS estimates of $1.70. Sales in the quarter were $422.45 million, an increase versus the $373.33 million the company reported last year. This easily beat analysts' consensus revenue expectations of $414.13 million. The stock is now trading at multi-year highs and is fast approaching levels last seen in 2007. The company's premier Colorado properties include Vail Resort, Beaver Creek Resort and Breckenridge. Vail Resorts also owns a number of properties in Lake Tahoe, including Heavenly Ski Resort. In addition to other ski resorts, the company also owns and/or manages a collection of luxury hotels under the RockResorts brand.