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Why Is Red Rock Resorts (RRR) Up 0.1% Since Last Earnings Report?

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It has been about a month since the last earnings report for Red Rock Resorts (RRR - Free Report) . Shares have added about 0.1% in that time frame, underperforming 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 & Revenues Beat Estimates

Red Rock Resorts reported fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter’s figure.

Earnings & Revenues

In the quarter under review, adjusted earnings per share (EPS) came in at 95 cents, outpacing the Zacks Consensus Estimate of 40 cents. In the prior-year quarter, it recorded an adjusted EPS of $1.

Quarterly revenues of $462.7 million surpassed the Zacks Consensus Estimate of $440 million. The top line rose 8.8% on a year-over-year basis. The company benefited from strong visitation and gaming activity in the local, regional and national markets. The combination of this momentum and high spending per visit (on the majority of card-to-play options) resulted in record revenue and profitability in the gaming categories.

Segmental Details

Las Vegas Operations: During fourth-quarter 2023, segmental revenues totaled $459.4 million, up 9.5% from $419.6 million in the prior-year quarter. Our projection was $425.3 million. Adjusted EBITDA was $220.3 million, up 6.5% year over year.

Native American Management: During the quarter under discussion, the company reported no segmental revenues.

Operating Highlights

During the fourth quarter, selling, general and administrative expenses came in at $96.7 million compared with $85 million reported in the prior-year quarter. Our model estimated the metric at $92.4 million.

Net income during the quarter came in at $108.9 million compared with $170.2 million reported in the prior-year quarter. Our model estimated the metric at $79.2 million.

Adjusted EBITDA in the fourth quarter came in at $201.3 million compared with $194.4 million reported in the prior-year quarter. Our model estimated the metric at $188.1 million.

Other Financial Details

As of Dec 31, 2023, Red Rock Resorts had cash and cash equivalents of $137.6 million compared with $122.8 million as of Sep 30, 2023.

Outstanding debt at the fourth-quarter end was $3.4 billion compared with $3.3 billion in the preceding quarter.

2023 Highlights

Total revenues in 2023 came in at $1.72 billion compared with $1.66 billion in 2022.

Net income in 2023 came in at $337.8 million compared with $390.4 million in 2022.

In 2023, diluted EPS came in at $2.94 compared with $3.36 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 subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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.


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