Casino resort and entertainment company Red Rock Resorts (NASDAQ:RRR) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Red Rock Resorts beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $486.4 million, up 16.9% year on year. It was a slower quarter for the company, with a miss of analysts’ earnings estimates.
Is Red Rock Resorts a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Red Rock Resorts’s revenue to grow 12% year on year to $460.9 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 11 analysts). Red Rock Resorts has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Red Rock Resorts’s peers in the casino operator segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Boyd Gaming delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 4.8%, and Monarch reported revenues up 3.7%, topping estimates by 2.9%. Boyd Gaming traded up 7.8% following the results while Monarch was also up 6.4%.
Read our full analysis of Boyd Gaming’s results here and Monarch’s results here.
There has been positive sentiment among investors in the casino operator segment, with share prices up 3.3% on average over the last month. Red Rock Resorts is down 2.4% during the same time and is heading into earnings with an average analyst price target of $63.07 (compared to the current share price of $51.34).
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