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Why Is Red Rock Resorts (RRR) Down 6.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for Red Rock Resorts (RRR - Free Report) . Shares have lost about 6.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Red Rock Resorts due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Red Rock Resorts, Inc. before we dive into how investors and analysts have reacted as of late.
Red Rock Resorts Q2 Earnings & Revenues Beat Estimates
Red Rock Resorts reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines declined year over year, reflecting softer results across casino, food and beverage, room and Native American operations.
In the quarter under review, earnings per share came in at 67 cents, topping the Zacks Consensus Estimate of 33 cents by 103%. In the prior-year quarter, the company recorded earnings of 95 cents per share. Quarterly revenues of $510.3 million surpassed the Zacks Consensus Estimate of $497 million by 2.8%. However, the top line declined 3% year over year.
RRR's Casino-Led Mix Softens in Q2
Casino revenues remained the largest contributor in the quarter, declining to $338.3 million from $344.8 million a year ago. Food and beverage revenues also decreased to $93 million from $94.4 million in the prior-year quarter.
Room revenues were another soft spot within the mix, falling to $46.7 million from $51.2 million. Other revenues increased to $28.5 million from $25.9 million, while Native American management and development fees declined sharply to $3.8 million from $10 million a year earlier.
Red Rock Resorts' Las Vegas Operations Lose Ground
The company's Las Vegas operations continued to account for the bulk of its business, generating net revenues of $503.2 million in the second quarter. This marked a 2% decline from $513.3 million in the year-ago period.
Adjusted EBITDA from Las Vegas operations fell 5% year over year to $227.5 million from $239.4 million. The segment's adjusted EBITDA margin consequently narrowed to 45.2% from 46.7%, indicating that profitability declined at a faster pace than revenues during the quarter.
RRR Absorbs Higher Costs as Margins Contract
Expense trends added pressure to second-quarter profitability. Selling, general and administrative expenses increased to $117.9 million from $112 million, while depreciation and amortization climbed to $59 million from $48 million. Food and beverage costs also rose to $78.7 million from $75.9 million.
Total operating costs and expenses increased 4.5% year over year to $374.3 million. As a result, operating income declined 19.1% to $136 million, with the operating margin contracting to 26.7% from 31.9% in the prior-year quarter. Consolidated adjusted EBITDA decreased 9.3% to $208 million, while the adjusted EBITDA margin narrowed to 40.8% from 43.6%.
Red Rock Resorts Posts Lower Q2 Net Income
Net income was $76.6 million in the second quarter, down 29.3% from $108.3 million a year earlier. Net income attributable to Red Rock Resorts declined to $39.1 million from $56.4 million in the prior-year period.
Interest expense, net, eased to $49.6 million from $50.6 million. The quarter also included a $3.1 million gain related to the change in fair value of derivative instruments. This compared with a $2.3 million loss in the year-ago quarter, which also included an $8.5 million gain on Native American development.
RRR Maintains Liquidity and Returns Capital
Red Rock Resorts ended the second quarter with cash and cash equivalents of $136.5 million. The total principal amount of debt outstanding stood at $3.6 billion as of June 30, 2026, providing investors with a snapshot of the company's liquidity and leverage position at quarter-end.
The board declared a cash dividend of 26 cents per Class A common share for the second quarter of 2026, payable Sept. 30 to its stockholders of record as of Sept. 15, 2026. Before the dividend payment, Station Holdco LLC will distribute approximately $29 million, or 26 cents per unit, to its unit holders. About $17.1 million is expected to be distributed to Red Rock Resorts and approximately $11.9 million to the other Station Holdco unit holders.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -17.65% due to these changes.
VGM Scores
Currently, Red Rock Resorts has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Red Rock Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is Red Rock Resorts (RRR) Down 6.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Red Rock Resorts (RRR - Free Report) . Shares have lost about 6.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Red Rock Resorts due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Red Rock Resorts, Inc. before we dive into how investors and analysts have reacted as of late.
Red Rock Resorts Q2 Earnings & Revenues Beat Estimates
Red Rock Resorts reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines declined year over year, reflecting softer results across casino, food and beverage, room and Native American operations.
In the quarter under review, earnings per share came in at 67 cents, topping the Zacks Consensus Estimate of 33 cents by 103%. In the prior-year quarter, the company recorded earnings of 95 cents per share. Quarterly revenues of $510.3 million surpassed the Zacks Consensus Estimate of $497 million by 2.8%. However, the top line declined 3% year over year.
RRR's Casino-Led Mix Softens in Q2
Casino revenues remained the largest contributor in the quarter, declining to $338.3 million from $344.8 million a year ago. Food and beverage revenues also decreased to $93 million from $94.4 million in the prior-year quarter.
Room revenues were another soft spot within the mix, falling to $46.7 million from $51.2 million. Other revenues increased to $28.5 million from $25.9 million, while Native American management and development fees declined sharply to $3.8 million from $10 million a year earlier.
Red Rock Resorts' Las Vegas Operations Lose Ground
The company's Las Vegas operations continued to account for the bulk of its business, generating net revenues of $503.2 million in the second quarter. This marked a 2% decline from $513.3 million in the year-ago period.
Adjusted EBITDA from Las Vegas operations fell 5% year over year to $227.5 million from $239.4 million. The segment's adjusted EBITDA margin consequently narrowed to 45.2% from 46.7%, indicating that profitability declined at a faster pace than revenues during the quarter.
RRR Absorbs Higher Costs as Margins Contract
Expense trends added pressure to second-quarter profitability. Selling, general and administrative expenses increased to $117.9 million from $112 million, while depreciation and amortization climbed to $59 million from $48 million. Food and beverage costs also rose to $78.7 million from $75.9 million.
Total operating costs and expenses increased 4.5% year over year to $374.3 million. As a result, operating income declined 19.1% to $136 million, with the operating margin contracting to 26.7% from 31.9% in the prior-year quarter. Consolidated adjusted EBITDA decreased 9.3% to $208 million, while the adjusted EBITDA margin narrowed to 40.8% from 43.6%.
Red Rock Resorts Posts Lower Q2 Net Income
Net income was $76.6 million in the second quarter, down 29.3% from $108.3 million a year earlier. Net income attributable to Red Rock Resorts declined to $39.1 million from $56.4 million in the prior-year period.
Interest expense, net, eased to $49.6 million from $50.6 million. The quarter also included a $3.1 million gain related to the change in fair value of derivative instruments. This compared with a $2.3 million loss in the year-ago quarter, which also included an $8.5 million gain on Native American development.
RRR Maintains Liquidity and Returns Capital
Red Rock Resorts ended the second quarter with cash and cash equivalents of $136.5 million. The total principal amount of debt outstanding stood at $3.6 billion as of June 30, 2026, providing investors with a snapshot of the company's liquidity and leverage position at quarter-end.
The board declared a cash dividend of 26 cents per Class A common share for the second quarter of 2026, payable Sept. 30 to its stockholders of record as of Sept. 15, 2026. Before the dividend payment, Station Holdco LLC will distribute approximately $29 million, or 26 cents per unit, to its unit holders. About $17.1 million is expected to be distributed to Red Rock Resorts and approximately $11.9 million to the other Station Holdco unit holders.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -17.65% due to these changes.
VGM Scores
Currently, Red Rock Resorts has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Red Rock Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.