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Red Rock Resorts (RRR) Q4 Earnings & Revenues Beat Estimates

Zacks

Red Rock Resorts, Inc. RRR reported better-than-expected results in fourth-quarter 2018, after reporting mixed numbers in the prior-year quarter. Notably, this marked the company's fourth straight quarter of revenue beat. Results were driven by robust Las Vegas operations performance.

Following the impressive quarterly performance, shares of the company increased 1.3% in after-hours trading session yesterday. Also, the stock has gained 8.1% compared with the industry’s collective growth of 16.5% in the past three months.

Adjusted earnings came in at 30 cents per share beating the Zacks Consensus Estimate by a penny. However, the metric declined 9.1% on a year-over-year basis. Revenues totaled $431.5 million, faring better than the Zacks Consensus Estimate of $406 million. The top line also increased 7.8% year over year. The uptick can primarily be attributed to year-over-year gain in Las Vegas operations, which overshadowed decline in Native American management fees.

Casino revenues in the quarter amounted to $240.8 million, up 8.6% on a year-over-year basis. While food and beverage revenues increased 14.7% to $101 million, Other revenues rose 17.9% to $27.1 million. Room also surged 6.4% to $42.2 million. However, management fees revenues declined 26.6% to $20.5 million.


Segmental Details

Las Vegas Operations

Revenues at this segment summed $409.5 million, up 10.4% year over year. Also, the segment’s EBITDA increased to $121 million, up 14.4% year over year. On a same-store basis, the segment registered highest growth for both revenues and EBITDA since 2007. Results were driven by robust performance across both gaming and non-gaming segments.

Native American Management

Revenues at this segment declined 26.9% to $20.4 million. Meanwhile, adjusted EBITDA decreased to $19.1 million from $24.5 million on termination of the Gun Lake management agreement in February 2018.

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

Other Financial Details

As of Dec 31, 2018, Red Rock Resorts had cash and cash equivalent of $114.6 million. Outstanding debt at the end of the quarter was $2.91 billion. The company declared a quarterly cash dividend of 10 cents, payable Mar 29, 2019, to its shareholder of record as of Mar 14, 2019.

Zacks Rank & Other Stocks to Consider

Red Rock Resorts currently has a Zacks Rank #2 (Buy). Other favorably-ranked stocks that warrant a look in the same space include Churchill Downs Incorporated CHDN, PlayAGS, Inc. AGS and Zynga Inc. ZNGA, each carrying the same rank as Red Rock Resorts. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Churchill Downs has reported better-than-expected earnings in the training three quarters.

PlayAGS long-term earnings are likely to grow by 12%.

Zynga current-year earnings are likely to witness robust growth of 162.5%.

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