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Factors Setting the Tone for Red Rock Resorts (RRR) Q4 Earnings
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Red Rock Resorts, Inc. (RRR - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 7, 2024, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 57.9%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 40 cents in the past seven days. The estimated figure indicates a 60% decrease from $1 per share reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $440.4 million. The metric suggests an increase of 3.5% from the year-ago quarter’s figure.
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors to Note
Red Rock Resorts’ fourth-quarter revenues are expected to increase year over year, driven by stable gaming and non-gaming segments' performance and increased spending per visit across its portfolio. Its emphasis on the expansion of new amenities, increased development projects and cost-saving initiatives are likely to have aided the company’s performance in the to-be-reported quarter.
However, softened casino demand in Las Vegas operations is likely to have impacted the company’s top line. In the quarter to be reported, we expect casino revenues to decline 0.8% year over year to $285.1 million. Nevertheless, food and beverage and room revenues are expected to increase 4.9% and 7.7% year over year to $77.4 million and 47.8 million, respectively.
The company's bottom line is likely to have been impacted by price inflation in ordinary goods and services such as food costs, supplies, energy costs and construction costs. Our model predicts total operating expenses in the fourth quarter to increase 46.4% year over year to $298.5 million.
However, its cost-saving initiatives are expected to have partially offset the adverse effects of these headwinds. This includes streamlining operations, optimization of marketing initiatives, and renegotiating vendor and third-party agreements.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Red Rock Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: RRR has an Earnings ESP of +11.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +15.51% and a Zacks Rank #3.
Shares of MGM Resorts have increased 9.4% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +3.35% and a Zacks Rank #3.
Shares of Boyd Gaming have declined 1.9% in the past year. BYD’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.
Academy Sports and Outdoors, Inc. (ASO - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank #3.
Shares of Academy Sports have increased 3.7% in the past year. ASO’s earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 4.7%, on average.
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Factors Setting the Tone for Red Rock Resorts (RRR) Q4 Earnings
Red Rock Resorts, Inc. (RRR - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 7, 2024, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 57.9%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 40 cents in the past seven days. The estimated figure indicates a 60% decrease from $1 per share reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $440.4 million. The metric suggests an increase of 3.5% from the year-ago quarter’s figure.
Red Rock Resorts, Inc. Price and EPS Surprise
Red Rock Resorts, Inc. price-eps-surprise | Red Rock Resorts, Inc. Quote
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors to Note
Red Rock Resorts’ fourth-quarter revenues are expected to increase year over year, driven by stable gaming and non-gaming segments' performance and increased spending per visit across its portfolio. Its emphasis on the expansion of new amenities, increased development projects and cost-saving initiatives are likely to have aided the company’s performance in the to-be-reported quarter.
However, softened casino demand in Las Vegas operations is likely to have impacted the company’s top line. In the quarter to be reported, we expect casino revenues to decline 0.8% year over year to $285.1 million. Nevertheless, food and beverage and room revenues are expected to increase 4.9% and 7.7% year over year to $77.4 million and 47.8 million, respectively.
The company's bottom line is likely to have been impacted by price inflation in ordinary goods and services such as food costs, supplies, energy costs and construction costs. Our model predicts total operating expenses in the fourth quarter to increase 46.4% year over year to $298.5 million.
However, its cost-saving initiatives are expected to have partially offset the adverse effects of these headwinds. This includes streamlining operations, optimization of marketing initiatives, and renegotiating vendor and third-party agreements.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Red Rock Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: RRR has an Earnings ESP of +11.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +15.51% and a Zacks Rank #3.
Shares of MGM Resorts have increased 9.4% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +3.35% and a Zacks Rank #3.
Shares of Boyd Gaming have declined 1.9% in the past year. BYD’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.
Academy Sports and Outdoors, Inc. (ASO - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank #3.
Shares of Academy Sports have increased 3.7% in the past year. ASO’s earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 4.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.