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Red Rock Resorts (RRR) Q1 Earnings & Revenues Top Estimates

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

Management stated that, during the first quarter, the company maintained its reopening program. Moreover, the company operated its first-to-reopen properties of Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station and Wildfire Properties.

Earnings & Revenues

In the quarter under review, adjusted earnings per share was 98 cents, which comfortably surpassed the Zacks Consensus Estimate of 23 cents. In the prior-year quarter, the company had reported adjusted loss of 11 cents per share.

Revenues of $352.6 million beat the consensus mark of $328.8 million by 7.2%. However, the top line declined 6.6% on a year-over-year basis primarily due to the pandemic.

Notably, adjusted EBITDA during this period increased 110.8%, while adjusted EBITDA margin rose 2,470 basis points from the prior-year quarter to 44.4% year over year.

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

Segmental Details

Las Vegas Operations: Revenues at the segment totaled $342.8 million, down 3.8% year over year primarily owing to the pandemic. However, adjusted EBITDA increased 134.6% from the prior-year quarter’s figure to $160.7 million.

Native American Management: Revenues at the segment declined 58% year over year to $8.1 million. Meanwhile, adjusted EBITDA fell 56.8% from the prior-year quarter’s figure to $7.6 million.

Other Financial Details

As of Mar 31, 2021, Red Rock Resorts had cash and cash equivalent of $117.9 million. Outstanding debt at the end of the first quarter was $2.9 billion.

Other Development

On May 4, 2021, the company announced that its subsidiary Station Casinos LLC came in to an agreement with a subsidiary of the San Manuel Band of Mission Indians (“San Manuel”) to sell the Palms Casinos Resort. The cash value of the transaction is $650 million and is subject to regulatory approvals and other customary closing conditions.

Zacks Rank

Red Rock Resorts — which shares space with Boyd Gaming Corporation (BYD - Free Report) , Corsair Gaming, Inc. (CRSR - Free Report) and NeoGames S.A. (NGMS - Free Report) in the Zacks Gaming industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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