Red Rock Resorts (RRR) Q4 Earnings & Revenues Beat Estimates
Red Rock Resorts, Inc. RRR reported fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter’s figure. Following the results, shares of the company moved up 4.1% during after hour trading session on Feb 7.
Earnings & Revenues
In the quarter under review, adjusted earnings per share (EPS) came in at 95 cents, outpacing the Zacks Consensus Estimate of 40 cents. In the prior-year quarter, it recorded an adjusted EPS of $1.
Quarterly revenues of $462.7 million surpassed the Zacks Consensus Estimate of $440 million. The top line rose 8.8% on a year-over-year basis. The company benefited from strong visitation and gaming activity in the local, regional and national markets. The combination of this momentum and high spending per visit (on the majority of card-to-play options) resulted in record revenue and profitability in the gaming categories.
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: During fourth-quarter 2023, segmental revenues totaled $459.4 million, up 9.5% from $419.6 million in the prior-year quarter. Our projection was $425.3 million. Adjusted EBITDA was $220.3 million, up 6.5% year over year.
Native American Management: During the quarter under discussion, the company reported no segmental revenues.
Operating Highlights
During the fourth quarter, selling, general and administrative expenses came in at $96.7 million compared with $85 million reported in the prior-year quarter. Our model estimated the metric at $92.4 million.
Net income during the quarter came in at $108.9 million compared with $170.2 million reported in the prior-year quarter. Our model estimated the metric at $79.2 million.
Adjusted EBITDA in the fourth quarter came in at $201.3 million compared with $194.4 million reported in the prior-year quarter. Our model estimated the metric at $188.1 million.
Other Financial Details
As of Dec 31, 2023, Red Rock Resorts had cash and cash equivalents of $137.6 million compared with $122.8 million as of Sep 30, 2023.
Outstanding debt at the fourth-quarter end was $3.4 billion compared with $3.3 billion in the preceding quarter.
2023 Highlights
Total revenues in 2023 came in at $1.72 billion compared with $1.66 billion in 2022.
Net income in 2023 came in at $337.8 million compared with $390.4 million in 2022.
In 2023, diluted EPS came in at $2.94 compared with $3.36 reported in the previous year.
Zacks Rank & Key Picks
Red Rock Resorts currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 26.4% on average. RCL’s shares have surged 61% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates a rise of 13.6% and 40.5%, respectively, from the year-ago period’s levels.
H World Group Limited HTHT currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 35.3% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.2% and 7.1%, respectively, from the year-ago period’s levels.
Carnival Corporation & plc CCL carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 32.9% in the past year.
The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates a rise of 13.8% from the year-ago levels.
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