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Red Rock Resorts (RRR) Q4 Earnings Beat Estimates, Stock Up

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Red Rock Resorts, Inc. (RRR - Free Report) reported fourth-quarter 2020 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Notably, both the metrics surpassed the consensus estimate for the third straight quarter.

The management stated that its business has been stable as it reopened properties in a phased manner. Notably, Adjusted EBITDA during this period increased 9.4%, while adjusted EBITDA margin increased 1,397 basis points to 43.8%. Following the results, shares of the company increased 6.8% during after-hour trading session on Feb 9.

Earnings & Revenues

In the quarter under review, adjusted earnings per share was 39 cents, which comfortably surpassed the Zacks Consensus Estimate of 24 cents. In the prior-year quarter, the company had reported adjusted earnings of 5 cents per share.

Red Rock Resorts, Inc. Price, Consensus and EPS Surprise

 

Red Rock Resorts, Inc. Price, Consensus and EPS Surprise

Red Rock Resorts, Inc. price-consensus-eps-surprise-chart | Red Rock Resorts, Inc. Quote

 

Revenues of $343.4 million beat the consensus mark of $336 million by 2.2%. However, the top line declined 25.5% on a year-over-year basis primarily due to the coronavirus pandemic.

Segmental Details

Las Vegas Operations: Revenues in the segment totaled $316.2 million, down 27.8% year over year primarily owing to the pandemic. However, adjusted EBITDA increased 5.5% from the prior-year quarter’s figure to $137.1 million.

Native American Management: Revenues in the segment rose 20.8% year over year to $25.6 million. Meanwhile, adjusted EBITDA surged 24.9% from the prior-year quarter’s figure to $24.8 million.

Other Financial Details

As of Dec 31, 2020, Red Rock Resorts had cash and cash equivalent of $121.2 million. Outstanding debt at the end of the fourth quarter was $2.9 billion.

2020 Highlights

Net revenues in 2020 came in at $1,182.4 million compared with $1,856.5 million in 2019.

Selling, general and administrative expenses in 2020 came in at $324.6 million compared with $416.4 million in 2019.

In 2020, loss per share came in at $2.13 compared with $0.05 in the previous year.

Zacks Rank & Key Picks

Currently, Red Rock Resorts carries a Zacks Rank #4 (Sell).

Some other better-ranked stocks in the Zacks Consumer Discretionary sector include TEGNA Inc. (TGNA - Free Report) , Full House Resorts, Inc. (FLL - Free Report) and Golden Entertainment, Inc. (GDEN - Free Report) . TEGNA sports a Zacks Rank #1 (Strong Buy), while Full House Resorts and Golden Entertainment carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

TEGNA has a trailing four-quarter earnings surprise of 19.8%, on average.

2021 Earnings for Full House Resorts and Golden Entertainment are expected to surge 2,100% and 93.9%, respectively.

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