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Why Is Red Rock Resorts (RRR) Down 7.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Red Rock Resorts (RRR - Free Report) . Shares have lost about 7.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Red Rock Resorts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Red Rock Resorts Q3 Earnings & Revenues Top Estimates
Red Rock Resorts, Inc. reported strong third-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Notably, both the metrics beat the consensus mark for the sixth straight quarter. The top and bottom lines also improved on a year-over-year basis.
Earnings & Revenues
In the quarter under review, adjusted earnings per share was 93 cents, which outpaced the Zacks Consensus Estimate of 53 cents. In the prior-year quarter, the company had reported an adjusted earnings of 56 cents per share.
Quarterly revenues of $414.8 million beat the consensus mark of $404 million. The top line surged 17% on a year-over-year basis. The upside was primarily driven by ramped-up COVID-19 vaccinations, robust gaming revenues and increased visitation.
Meanwhile, adjusted EBITDA in the quarter was $184.5 million, reflecting an increase of 15% year over year.
Segmental Details
Las Vegas Operations: During third-quarter 2021, revenues in the segment totaled $412.7 million compared with $320.8 million in the prior-year quarter. The uptick can primarily be attributed to closure of operations of its properties in the prior-year quarter on account of the pandemic, and increased visitation. The segments’ adjusted EBITDA was $197.9 million, up 40% year over year.
Native American Management: During the quarter, the segment’s revenues were $0.2 million compared with $30.7 million in the prior-year quarter. The segment’s adjusted EBITDA was $0.2 million, up from $29.8 million in the year-ago quarter.
Other Financial Details
As of Sep 30, 2021, Red Rock Resorts had cash and cash equivalent of $89.9 million compared with $91 million in the previous quarter.
Outstanding debt at the end of the third quarter stood at $2.68 billion compared with $2.7 billion as on Jun 30, 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 8.13% due to these changes.
VGM Scores
At this time, Red Rock Resorts has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Red Rock Resorts has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Red Rock Resorts (RRR) Down 7.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Red Rock Resorts (RRR - Free Report) . Shares have lost about 7.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Red Rock Resorts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Red Rock Resorts Q3 Earnings & Revenues Top Estimates
Red Rock Resorts, Inc. reported strong third-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Notably, both the metrics beat the consensus mark for the sixth straight quarter. The top and bottom lines also improved on a year-over-year basis.
Earnings & Revenues
In the quarter under review, adjusted earnings per share was 93 cents, which outpaced the Zacks Consensus Estimate of 53 cents. In the prior-year quarter, the company had reported an adjusted earnings of 56 cents per share.
Quarterly revenues of $414.8 million beat the consensus mark of $404 million. The top line surged 17% on a year-over-year basis. The upside was primarily driven by ramped-up COVID-19 vaccinations, robust gaming revenues and increased visitation.
Meanwhile, adjusted EBITDA in the quarter was $184.5 million, reflecting an increase of 15% year over year.
Segmental Details
Las Vegas Operations: During third-quarter 2021, revenues in the segment totaled $412.7 million compared with $320.8 million in the prior-year quarter. The uptick can primarily be attributed to closure of operations of its properties in the prior-year quarter on account of the pandemic, and increased visitation. The segments’ adjusted EBITDA was $197.9 million, up 40% year over year.
Native American Management: During the quarter, the segment’s revenues were $0.2 million compared with $30.7 million in the prior-year quarter. The segment’s adjusted EBITDA was $0.2 million, up from $29.8 million in the year-ago quarter.
Other Financial Details
As of Sep 30, 2021, Red Rock Resorts had cash and cash equivalent of $89.9 million compared with $91 million in the previous quarter.
Outstanding debt at the end of the third quarter stood at $2.68 billion compared with $2.7 billion as on Jun 30, 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 8.13% due to these changes.
VGM Scores
At this time, Red Rock Resorts has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Red Rock Resorts has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.