Red Rock Resorts, Inc. RRR reported second-quarter 2020 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. However, the top and the bottom line declined on a year-over-year basis.
Although the pandemic severely impacted the company’s operations during the second quarter, the company’s Las Vegas properties witnessed solid performance post-reopening from Jun 4 through Jun 30, 2020. Adjusted EBITDA during this period increased 46.8%, while adjusted EBITDA margin increased 2,192 basis points to 45.9%. Following the results, shares of the company inched up 2.1% during after-hour trading on Aug 4.
Earnings & Revenues
In the quarter under review, adjusted loss per share came in at $1.01, narrower than the Zacks Consensus Estimate of a loss of $1.04. In the prior-year quarter, the company had reported adjusted earnings of 13 cents per share.
Red Rock Resorts, Inc. Price, Consensus and EPS Surprise
Revenues during the quarter totaled $108.5 million, beating the consensus mark of $82 million by 32.3%. However, the top line declined 77.5% on a year-over-year basis primarily because of the temporary closure of all properties owing to the coronavirus outbreak.
Las Vegas Operations: Revenues at this segment totaled $101 million, down 77.9% year over year primarily due to the temporary closure of all of the company's Las Vegas properties. Also, adjusted EBITDA declined 111.4% from the prior-year quarter’s figure to ($12.1) million.
Native American Management: Revenues at the segment declined 74.9% to $5.9 million. Meanwhile, adjusted EBITDA declined 76.3% from the prior-year quarter’s figure to $5.2 million, mainly due to the temporary closure of Graton Resort.
Other Financial Details
As of Jun 30, 2020, Red Rock Resorts had cash and cash equivalent of $270.1 million. Outstanding debt at the end of the second quarter was $3.3 billion.
Zacks Rank & Key Picks
Currently, Red Rock Resorts carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Monarch Casino & Resort, Inc. MCRI, YETI Holdings, Inc. YETI and Pool Corporation POOL, each sporting a Zacks Rank #1.
Earnings in 2021 for Monarch Casino are expected to surge 1033.4%.
YETI Holdings has a three-five-year earnings per share growth rate of 16.2%.
Pool Corporation has a trailing four-quarter earnings surprise of 16%, on average.
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