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Red Rock Resorts (RRR) Q3 Earnings & Revenues Top Estimates

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Red Rock Resorts, Inc. (RRR - Free Report) 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.

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

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

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.

Red Rock Resorts currently carries a Zacks Rank #3 (Hold).

Key Gaming Picks

Some better-ranked stocks worth considering in the same space include Accel Entertainment, Inc. (ACEL - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and International Game Technology PLC (IGT - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Accel Entertainment’s fiscal 2022 earnings is likely to witness growth of 23.8% year over year.

Boyd Gaming has an impressive long-term earnings growth rate of 42.8%.

International Game Technology fiscal 2022 earnings is likely to witness growth of 945.2% year over year.

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