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Red Rock Resorts (RRR) Q4 Earnings & Revenues Top Estimates

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Red Rock Resorts, Inc. (RRR - Free Report) reported fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year. The earnings beat estimates for the eleventh straight quarter.

Earnings & Revenues

In the quarter under review, adjusted earnings per share (EPS) came in at $1.00, which beat the Zacks Consensus Estimate of 56 cents. In the prior-year quarter, the company had adjusted EPS of 55 cents.

Quarterly revenues of $425.5 million beat the Zacks Consensus Estimate of $422 million and improved 0.7% on a year-over-year basis. The upside was primarily driven by streamlining of operations and optimization of marketing initiatives.

Meanwhile, adjusted EBITDA in the quarter was $194.1 million, up 2.5% 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: During fourth-quarter 2022, revenues in the segment totaled $419.6 million compared with $420.5 million reported in the prior-year quarter. The upside can primarily be attributed to the increased time spent on devices and strong spending per visit across its portfolio. The segment’s adjusted EBITDA was $206.9 million, down 0.9% year over year.

Native American Management: The segment’s revenues came in at $2.2 million.

Other Financial Details

As of Dec 31, 2022, RRR had cash and cash equivalents of $117.3 million compared with $336.6 million reported in the previous quarter. Outstanding debt at the end of the fourth quarter amounted to $3 billion.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the Zacks Consumer Discretionary sector are OneSpaWorld Holdings Limited (OSW - Free Report) , Manchester United plc (MANU - Free Report) and Las Vegas Sands Corp. (LVS - Free Report) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

OneSpaWorld has a trailing four-quarter earnings surprise of 84.2%, on average. Shares of the company have increased 7.5% in the past year.

The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 24.2% and 91%, respectively, from the year-ago period’s levels.

Manchester has a trailing four-quarter earnings surprise of 34.4%, on average. Shares of the company have gained 58.2% in the past year. 

The Zacks Consensus Estimate for MANU’s 2024 sales and EPS indicates a rise of 11.4% and 27.8%, respectively, from the year-ago levels.

Las Vegas Sands has a long-term earnings growth rate of 4.9%. The stock has increased 27.2% in the past year. 

The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 99.2% and 217.5%, respectively, from the year-ago period’s estimated levels.

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