Red Rock Resorts (NASDAQ:RRR) Announces Quarterly Earnings Results

Red Rock Resorts (NASDAQ:RRR) announced its quarterly earnings results on Tuesday. The company reported ($0.17) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.62), FiscalAI reports. The firm had revenue of $488.70 million for the quarter, compared to analyst estimates of $478.13 million. Red Rock Resorts had a return on equity of 56.19% and a net margin of 8.43%. The firm’s quarterly revenue was up 2.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.68 EPS.

Here are the key takeaways from Red Rock Resorts’ conference call:

• Las Vegas operations delivered record third-quarter revenue of $479.1 million, up 2.3% year over year, supported by healthy gaming trends, higher carded spend per visit, and increased net theo. Food and beverage revenue also reached a third-quarter record, while hotel revenue grew despite temporarily losing more than 4,500 room nights at Green Valley Ranch.
• Las Vegas adjusted EBITDA declined 2.3% to $204.6 million, with margin contracting 199 basis points to 42.7%; consolidated EBITDA fell 4.3% to $182.6 million. Management cited a difficult comparison from a prior-year bad-debt recovery, higher seasonal electricity costs, construction disruption, and a $5.8 million 50th-anniversary expense.
• 2026 capital expenditure guidance increased to $550 million-$570 million, primarily due to Green Valley Ranch cost overruns, expanded scope at Durango North, and accelerated construction spending. Durango North’s estimated investment rose to approximately $430 million, although management continues to target a roughly 20% return on investment.
• Durango continues to perform strongly, adding more than 168,000 customers to the database, while its 275,000-square-foot North expansion remains scheduled to open in the third quarter of 2027. Green Valley Ranch renovations are receiving positive customer feedback, and Sunset Station’s redevelopment is progressing toward completion in mid-2027.
• North Fork opened on October 27 with strong initial demand and positive customer feedback. Red Rock expects recurring management fees, received a $26 million initial development-fee installment, and began receiving cash principal and interest on its approximately $86 million development note.

Red Rock Resorts Price Performance

Red Rock Resorts stock opened at $51.39 on Wednesday. The company’s 50 day simple moving average is $52.18 and its 200-day simple moving average is $58.06. The company has a debt-to-equity ratio of 12.33, a quick ratio of 0.63 and a current ratio of 0.68. Red Rock Resorts has a 1 year low of $47.42 and a 1 year high of $68.99. The company has a market capitalization of $5.40 billion, a price-to-earnings ratio of 18.16, a price-to-earnings-growth ratio of 4.25 and a beta of 1.42.

Red Rock Resorts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Tuesday, December 15th. Red Rock Resorts’s payout ratio is 36.75%.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on RRR shares. The Goldman Sachs Group reiterated a “buy” rating and issued a $65.00 price objective on shares of Red Rock Resorts in a report on Tuesday, October 13th. Barclays raised their target price on Red Rock Resorts from $73.00 to $74.00 and gave the stock an “overweight” rating in a research note on Friday, October 9th. Wall Street Zen upgraded Red Rock Resorts from a “sell” rating to a “hold” rating in a research report on Sunday, July 12th. Weiss Ratings restated a “hold (c+)” rating on shares of Red Rock Resorts in a research report on Tuesday, October 6th. Finally, Capital One Financial raised Red Rock Resorts to a “buy” rating in a research note on Wednesday, September 9th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $72.06.

Insider Buying and Selling at Red Rock Resorts

In other Red Rock Resorts news, President Scott Kreeger sold 31,159 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $61.78, for a total value of $1,925,003.02. Following the sale, the president owned 203,881 shares of the company’s stock, valued at $12,595,768.18. The trade was a 13.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 54.34% of the company’s stock.

Key Red Rock Resorts News

Here are the key news stories impacting Red Rock Resorts this week:

• Positive Sentiment: Red Rock declared a quarterly dividend of $0.26 per share, or $1.04 annualized, representing a yield of about 2%. Dividend announcement
• Positive Sentiment: A valuation article argues RRR could be about 30% undervalued, citing record Las Vegas revenue and expansion investment. This provides a bullish counterpoint to the earnings concerns. Valuation analysis
• Neutral Sentiment: Q3 revenue increased 2.8% year over year to $488.7 million, topping analysts’ estimates of $478.1 million. Third-quarter results
• Negative Sentiment: Despite the revenue beat, earnings fell well short of consensus and were down from $0.68 per share a year earlier. The earnings shortfall is likely weighing on investor sentiment. Q3 earnings miss
• Negative Sentiment: Citizens lowered its price target to $70 and said investors view the results as a miss. Although the revised target remains above the stock’s recent price, the cut signals reduced optimism after the report. Citizens price-target update

Red Rock Resorts Company Profile

Red Rock Resorts, Inc is a gaming, entertainment and hospitality company based in Las Vegas, Nevada. Through its principal operating subsidiary, Station Casinos, the company develops, owns and operates casino resorts and other gaming properties, primarily serving the Las Vegas locals market.

Its portfolio includes destination-style properties such as Red Rock Casino Resort & Spa, Green Valley Ranch Resort Spa and Casino, and Durango Casino & Resort, along with neighborhood casinos including Palace Station, Boulder Station, Santa Fe Station and several Wildfire locations.