Vail Resorts, Inc. (NYSE:MTN) shares rose around 5% Tuesday morning despite the company’s reported Q2 results, which came in worse than the consensus estimates. Quarterly EPS and revenue were $5.47 and $906.5 million, compared to the consensus estimates of $5.70 and $960.24 million, respectively.

Full 2022 guidance was increased despite the quarterly miss, as $33 million of lift ticket revenue shifts into the April quarter due to the timing of early-season openings. Management also provided clarity on the major topic of labor costs, outlining a comprehensive plan to restore on-mountain staffing to desired levels while also increasing hourly wages and bolstering the company's HR organization.

The total cost in 2023, which is estimated to be $175 million above budgeted 2022 levels, likely caught many investors by surprise. Management noted, however, that the entirety of this increase would be expected to be offset by a return to fully normalized/recovered visitation and ancillary spend, pro forma for the Seven Springs acquisition.