Red Rock Resorts (RRR) Q3 Earnings & Revenues Beat Estimates

Red Rock Resorts, Inc. RRR reported third-quarter 2020 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Notably, both the metrics surpassed the consensus estimate for the second straight quarter. Following the results, not much movement was witnessed in the company’s stock price.

Management announced that its business has been stable since it reopened properties. Moreover, customers who live within driving distance to the company’s properties accounted for more than 90% of business. This was the first full quarter since reopening, wherein the company witnessed 12% increase in EBITDA.

Earnings & Revenues

In the quarter under review, adjusted earnings per share was 56 cents, which comfortably surpassed the Zacks Consensus Estimate of 15 cents. In the prior-year quarter, the company had reported adjusted earnings of 15 cents per share.

Revenues of $353.2 million beat the consensus mark of $276 million by 28.2%. However, the top line declined 24.2% on a year-over-year basis primarily due to the coronavirus pandemic.

Red Rock Resorts, Inc. Price, Consensus and EPS Surprise Red Rock Resorts, Inc. Price, Consensus and EPS Surprise

Red Rock Resorts, Inc. price-consensus-eps-surprise-chart | Red Rock Resorts, Inc. Quote

Segmental Details

Las Vegas Operations: Revenues at this segment totaled $320.8 million, down 27.2% year over year primarily owing to the pandemic. However, adjusted EBITDA surged 38.6% from the prior-year quarter’s figure to $141.7 million.

Native American Management: Revenues at the segment rose 31% to $30.7 million. Meanwhile, adjusted EBITDA increased 33.9% from the prior-year quarter’s figure to $29.8 million.

Other Financial Details

As of Sep 30, 2020, Red Rock Resorts had cash and cash equivalent of $108.9 million. Outstanding debt at the end of the third quarter was $3 billion.

Zacks Rank & Other Key Picks

Currently, Red Rock Resorts carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the Zacks Consumer Discretionary sector, which warrant a look are Monarch Casino & Resort, Inc. MCRI, YETI Holdings, Inc. YETI and Malibu Boats, Inc. MBUU. While Monarch Casino sports a Zacks Rank #1, YETI Holdings and Malibu Boats carry a Zacks Rank #2.

Monarch Casino anticipates 2021 earnings to soar 531%.

YETI Holdings has a three-five-year earnings per share growth rate of 14.3%.

Malibu Boats has beat estimates in each of the trailing four quarters, the average being 90.6%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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