Red Rock Resorts (RRR) to Report Q4 Earnings: What's in Store?

Red Rock Resorts, Inc. RRR is scheduled to report fourth-quarter 2021 results on Feb 2, 2022, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 75.5%.

How are Estimates Placed?

The Zacks Consensus Estimate for the fourth-quarter earnings is pegged at 53 cents per share, indicating an improvement of 35.9% from 39 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $407.6 million. The metric suggests an increase of 18.7% 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's take a look at how things have shaped up in the quarter.

Factors at Play

Red Rock Resorts’ fourth-quarter performance is likely to have benefitted from solid Las Vegas operations. Attributes such as best-in-class assets and locations, unparallel distribution and scale along with a solid organic development pipeline are likely to have driven the company’s performance in the fourth quarter. Also, streamlining operations, optimizing marketing initiatives and renegotiating vendor and third-party agreements are likely to have stoked the numbers in the to-be-reported quarter. The Zacks Consensus Estimate for net revenues at Las Vegas operations is pegged at $399 million, suggesting growth of 26.3% from the prior-year quarter’s figures.

Increased focus on casino gaming offerings (such as video poker, slot machines, table games, bingo and race and sports wagering) along with food and beverage is likely to have driven the top line in the fourth quarter. The Zacks Consensus Estimate for sales at casino and food and beverage and rooms is pegged at $275 million and $65 million, calling for year-over-year growth of 14.1% and 48.6%, respectively. The consensus mark for room revenues is pegged at $40.2 million, suggesting an increase of 107% from the prior-year quarter’s levels. Improved visitation as well as increased time on device and spend per visit is likely to have contributed to the company’s top line in the fourth quarter.

However, increased costs in maintenance, modification, sports betting, marketing initiatives and investment projects are likely to have dented the company’s earnings in fourth-quarter 2021.

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. But that's not the case here.

Earnings ESP: Red Rock Resorts has an Earnings ESP of -2.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

Crocs, Inc. CROX has an Earnings ESP of +7.09% and a Zacks Rank #1.

Shares of Crocs have gained 33.9% in the past year. CROX’s earnings topped the consensus mark in all the last four quarters, with the average being 41.6%.

Oxford Industries, Inc. OXM has an Earnings ESP of +2.97% and a Zacks Rank #1.

Shares of Oxford Industries have gained 34.7% in the past year. OXM’s earnings topped the consensus mark thrice but missed the same on one occasion, with the average surprise being 96.7%.

Boyd Gaming Corporation BYD has an Earnings ESP of +2.61% and a Zacks Rank #3.

Shares of Boyd Gaming have gained 27.9% in the past year. BYD’s earnings topped the consensus mark in all of the trailing four quarters, with the average surprise being 56.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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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.