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Red Rock Resorts' (RRR) Q4 Earnings Top Estimates, Rise Y/Y

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Red Rock Resorts, Inc. (RRR - Free Report) reported fourth-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Notably, the metrics surpassed the consensus estimate for the seventh straight quarter. The top and the bottom line increased on a year-over-year basis. Following the solid results, shares of the company moved up 8.4% during the after-hours trading session on Feb 2.

Earnings & Revenues

In the quarter under review, adjusted earnings per share (EPS) came in at 55 cents, surpassing the Zacks Consensus Estimate of 52 cents. In the prior-year quarter, the company had reported adjusted earnings of 39 cents per share.

Quarterly revenues of $422.4 million beat the consensus mark of $408 million by 3.6%. The top line increased 23% on a year-over-year basis. The upside was primarily driven by the streamlining of operations, optimization of marketing initiatives and renegotiating vendor and third-party agreements.

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

 

Meanwhile, adjusted EBITDA in the quarter was $189.7 million, up 26% year over year.

Segmental Details

Las Vegas Operations: During fourth-quarter 2021, revenues in the segment totaled $420.5 million compared with $316.2 million reported in the prior-year quarter. The upside was primarily backed by increased time spent on devices and strong spending per visit across its portfolio. The segments’ adjusted EBITDA was $204.8 million, up 49% year over year.

Native American Management: During the quarter, the company did not report any revenues and adjusted EBITDA in the Native American Management segment. In the prior-year quarter, the company reported segmental revenues and adjusted EBITDA of $25.6 million and $24.8 million, respectively.

Other Financial Details

As of Dec 31, 2021, Red Rock Resorts had cash and cash equivalent of $275.3 million compared with $89.9 million reported in the previous quarter.

Outstanding debt at the end of the fourth quarter came in at $2.89 billion compared with $2.68 billion as of Sep 30, 2021.

Other Developments

During the quarter, the company bolstered its balance sheet and increased its financial flexibility by closing the previously-announced sale of the Palms Casino Resort and Palms Place for an aggregate purchase price of $650 million.

2021 Highlights

Net revenues in 2021 came in at $1,617.9 million compared with $1,182.4 million in 2020.

Adjusted EBITDA in 2021 came in at $741million compared with $372.5 million in 2020.

In 2021, diluted EPS came in at $2.84 per share against ($2.13) reported in the previous year.

Zacks Rank & Key Picks

Red Rock Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Some better-ranked stocks from the Zacks Consumer Discretionary sector are Crocs, Inc. (CROX - Free Report) , RCI Hospitality Holdings, Inc. (RICK - Free Report) and Guess, Inc. (GES - Free Report) .

Crocs flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 41.6%, on average. Shares of Crocs have increased 38.2% in the past year.

The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.7% and 23.2%, respectively, from the year-ago period’s levels.

RCI Hospitality flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 67.7%, on average. Shares of RCI Hospitality have surged 65.7% in the past year.

The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 34.7% and 22.1%, respectively, from the year-ago period’s levels.

Guess carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 97%, on average. Shares of Guess have increased 4.8% in the past six months.

The Zacks Consensus Estimate for GES’s 2022 sales and EPS suggests growth of 38.6% and 4,342.9%, respectively, from the year-ago period’s levels.

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