A month has gone by since the last earnings report for Red Rock Resorts (RRR Quick QuoteRRR - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Red Rock Resorts due for a pullback? 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 catalysts.

Red Rock Resorts Q4 Earnings Top Estimates, Rise Y/Y

Red Rock Resorts 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.

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.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

At this time, Red Rock Resorts has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, 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

Red Rock Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.