Red Rock Resorts (NASDAQ:RRR) Announces Earnings Results

Red Rock Resorts (NASDAQ:RRR) posted its earnings results on Tuesday. The company reported $0.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.16, FiscalAI reports. Red Rock Resorts had a return on equity of 61.67% and a net margin of 9.21%.The firm had revenue of $510.26 million for the quarter, compared to the consensus estimate of $500.08 million. During the same quarter in the prior year, the business posted $0.95 earnings per share. The business’s quarterly revenue was down 3.0% on a year-over-year basis.

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

• Second-quarter results declined year over year: Las Vegas net revenue fell 2% to $503.2 million and adjusted EBITDA fell 5% to $227.5 million, while consolidated EBITDA declined 9.3% to $208 million. Results were affected by Green Valley Ranch’s hotel renovation, one-time items, and the absence of a prior-year North Fork catch-up payment.
• The company reported stable underlying demand, with higher carded spend per visit and net theoretical win across local, regional, and national customers. Management said gaming revenue was the second-highest for a second quarter in company history, while hotel occupancy, ADR, and food-and-beverage trends remained healthy despite temporary disruptions.
• Durango continues to be a key growth driver, and the Durango North expansion remains on schedule to open in the second half of 2027. North Fork is also progressing toward an early fourth-quarter 2026 opening, with total project costs still expected to be approximately $750 million.
• Near-term results will face continued construction-related disruption at Durango, Sunset Station, and Green Valley Ranch; management estimates about $2.5 million of Durango disruption in the third quarter and approximately $8 million of one-time anniversary and brand-marketing expense. Management also noted that third-quarter Las Vegas operations are typically about 10% below the second quarter and that elevated electricity costs remain an operating expense headwind.
• Red Rock generated $100 million of operating free cash flow in the quarter and returned approximately $198 million to shareholders year to date through dividends and repurchases. The company maintained its $0.26 per-share quarterly dividend and reaffirmed 2026 capital spending guidance of $375 million to $425 million.

Red Rock Resorts Trading Down 2.0%

Shares of RRR stock opened at $64.27 on Wednesday. The company has a debt-to-equity ratio of 14.42, a quick ratio of 0.76 and a current ratio of 0.81. Red Rock Resorts has a 52-week low of $50.52 and a 52-week high of $68.99. The company has a market capitalization of $6.75 billion, a PE ratio of 20.67, a price-to-earnings-growth ratio of 4.82 and a beta of 1.36. The business’s fifty day moving average is $62.69 and its 200 day moving average is $59.84.

Red Rock Resorts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a $0.26 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.04 annualized dividend and a dividend yield of 1.6%. Red Rock Resorts’s dividend payout ratio is presently 33.44%.

Hedge Funds Weigh In On Red Rock Resorts

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RRR. Kestra Advisory Services LLC purchased a new stake in shares of Red Rock Resorts in the 4th quarter valued at about $27,000. PNC Financial Services Group Inc. grew its holdings in shares of Red Rock Resorts by 98.9% during the fourth quarter. PNC Financial Services Group Inc. now owns 1,474 shares of the company’s stock worth $91,000 after purchasing an additional 733 shares in the last quarter. Canada Pension Plan Investment Board purchased a new position in shares of Red Rock Resorts during the second quarter worth about $94,000. Russell Investments Group Ltd. increased its position in shares of Red Rock Resorts by 1,385.7% in the second quarter. Russell Investments Group Ltd. now owns 1,872 shares of the company’s stock worth $97,000 after purchasing an additional 1,746 shares during the last quarter. Finally, Osaic Holdings Inc. increased its position in shares of Red Rock Resorts by 14.8% in the second quarter. Osaic Holdings Inc. now owns 2,996 shares of the company’s stock worth $149,000 after purchasing an additional 387 shares during the last quarter. 47.84% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on RRR shares. Jefferies Financial Group reiterated a “buy” rating on shares of Red Rock Resorts in a research note on Thursday, July 2nd. Susquehanna dropped their price objective on Red Rock Resorts from $77.00 to $70.00 and set a “positive” rating on the stock in a report on Thursday, April 30th. Stifel Nicolaus set a $70.00 target price on Red Rock Resorts in a research note on Friday, May 29th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $72.00 target price on shares of Red Rock Resorts in a report on Thursday, April 30th. Finally, Wall Street Zen upgraded Red Rock Resorts from a “sell” rating to a “hold” rating in a research report on Sunday, July 12th. Fourteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $71.24.

Red Rock Resorts Company Profile

Red Rock Resorts, Inc (NASDAQ: RRR) is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.

The company’s flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.