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RRR Gears Up to Report Q4 Earnings: Here's What You Should Know
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Red Rock Resorts, Inc. (RRR - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 11, 2025, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 29.7%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
RRR’s earnings surpassed the consensus mark in each of the trailing four quarters, with an average surprise of 60.1%.
Trend in RRR’s Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 42 cents in the past 30 days. The estimated figure indicates a 55.8% decrease from $95 per share reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $489.6 million. The metric indicates an increase of 5.8% from the year-ago quarter’s figure.
Let us discuss the factors that are likely to be reflected in the results of the quarter to be reported.
Factors to Shape Up RRR’s Results
Red Rock Resorts’ fourth-quarter top line is expected to have risen year over year, driven by stable gaming and non-gaming segments' performance and increased spending per visit across its portfolio. Growth in the food and beverage and hotel segments, supported by higher average checks, is likely to have contributed to the performance. Also, 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.
In the quarter to be reported, we expect casino, food and beverage and room revenues to have increased 6.1%, 9% and 7.7%, respectively, year over year to $319.9 million, $90.9 million and 52.4 million.
However, softness in group sales and catering businesses is likely to have impacted the company’s top line. The company has been witnessing flat hotel sales room nights. It expects tough comps in the fourth quarter of 2024 and the first quarter of 2025 due to the impact of the Super Bowl on hotel performance.
The company's bottom line is likely to have been impacted by elevated expenses and price inflation in ordinary goods and services such as food costs, supplies and construction costs. Our model predicts total operating expenses in the fourth quarter to have increased 22.4% year over year to $356 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 About RRR
Our proven model does not conclusively predict 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. But that is not the case here, as you will see below.
Earnings ESP of RRR: Red Rock Resorts has an Earnings ESP of -2.99%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
RRR’s Zacks Rank: The company currently carries a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer-Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat.
Life Time Group Holdings, Inc. (LTH - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.
Trip.com Group Limited (TCOM - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.
TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.
Rush Street Interactive, Inc. (RSI - Free Report) currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.
RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.
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RRR Gears Up to Report Q4 Earnings: Here's What You Should Know
Red Rock Resorts, Inc. (RRR - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 11, 2025, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 29.7%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
RRR’s earnings surpassed the consensus mark in each of the trailing four quarters, with an average surprise of 60.1%.
Trend in RRR’s Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 42 cents in the past 30 days. The estimated figure indicates a 55.8% decrease from $95 per share reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $489.6 million. The metric indicates an increase of 5.8% 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 us discuss the factors that are likely to be reflected in the results of the quarter to be reported.
Factors to Shape Up RRR’s Results
Red Rock Resorts’ fourth-quarter top line is expected to have risen year over year, driven by stable gaming and non-gaming segments' performance and increased spending per visit across its portfolio. Growth in the food and beverage and hotel segments, supported by higher average checks, is likely to have contributed to the performance. Also, 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.
In the quarter to be reported, we expect casino, food and beverage and room revenues to have increased 6.1%, 9% and 7.7%, respectively, year over year to $319.9 million, $90.9 million and 52.4 million.
However, softness in group sales and catering businesses is likely to have impacted the company’s top line. The company has been witnessing flat hotel sales room nights. It expects tough comps in the fourth quarter of 2024 and the first quarter of 2025 due to the impact of the Super Bowl on hotel performance.
The company's bottom line is likely to have been impacted by elevated expenses and price inflation in ordinary goods and services such as food costs, supplies and construction costs. Our model predicts total operating expenses in the fourth quarter to have increased 22.4% year over year to $356 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 About RRR
Our proven model does not conclusively predict 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. But that is not the case here, as you will see below.
Earnings ESP of RRR: Red Rock Resorts has an Earnings ESP of -2.99%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
RRR’s Zacks Rank: The company currently carries a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer-Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat.
Life Time Group Holdings, Inc. (LTH - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.
Trip.com Group Limited (TCOM - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.
TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.
Rush Street Interactive, Inc. (RSI - Free Report) currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.
RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.