Red Rock Resorts, Inc. (RRR - Free Report) is scheduled to report first-quarter 2020 results on May 19, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 63.6%. Further, the company has a trailing four-quarter positive earnings surprise of 6.6%, on average.
How Are Estimates Placed?
The Zacks Consensus Estimate for first-quarter earnings is pegged at 13 cents. This indicates an 18.8% decline from 16 cents registered in the year-ago quarter. The consensus estimates for revenues stands at $438.4 million, suggesting a decline of 1.9% from the prior-year quarter.
Let's take a look at how things have shaped up in the quarter.
Red Rock Resorts, Inc. Price and EPS Surprise
Factors at Play
Owing to the coronavirus pandemic, the company temporarily closed operations in mid-March. This along with increased costs in maintenance, modification, sports betting, marketing initiatives and investment projects is likely to have weighed on the company’s earnings in first-quarter 2020. Notably decline in revenues from Room and Management is likely to reflect in the revenue results.
However, increased focus on gaming segments including slots, tables, sports and ancillary games along with food and beverage is likely to have driven the top line in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Red Rock Resorts this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. That is not the case here.
Earnings ESP: Red Rock Resorts has an Earnings ESP of -138.46%. 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.
Boyd Gaming Corporation (BYD - Free Report) reported first-quarter 2020 results, wherein both the top and the bottom line missed the Zacks Consensus Estimate. Adjusted loss per share came in at 2 cents comparing unfavorably with the Zacks Consensus Estimate of earnings of 23 cents. Quarterly revenues of $680.5 million missed the consensus mark by 12.1% and declined 47.7% year over year.
MGM Resorts International (MGM - Free Report) reported first-quarter 2020 results, wherein earnings and revenues missed the Zacks Consensus Estimate. The company reported adjusted loss per share of 45 cents, wider than the Zacks Consensus Estimate of a loss of 8 cents. Quarterly revenues of $2,252.8 million lagged the consensus mark by 11.4% and declined 29% year over year as well.
Wynn Resorts, Limited (WYNN - Free Report) reported first-quarter 2020 results, wherein earnings and revenues missed the Zacks Consensus Estimate for the third straight quarter. The company reported an adjusted loss of $3.54 per share, wider than the Zacks Consensus Estimate of a loss of $1.05. Quarterly revenues of $953.7 million lagged the consensus mark by 12.7% and declined 42.3% year over year.
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