Casino resort and entertainment company Red Rock Resorts (NASDAQ: RRR) will be reporting earnings this Wednesday after market close. Here’s what to expect.
Red Rock Resorts beat analysts’ revenue expectations last quarter, reporting revenues of $511.8 million, up 3.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
Is Red Rock Resorts a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Red Rock Resorts’s revenue to grow 1.8% year on year, in line with the 1.8% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Red Rock Resorts has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Red Rock Resorts’s peers in the consumer discretionary - casino operator segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 5.2%, and PENN Entertainment reported revenues up 6.4%, topping estimates by 1.7%. Monarch traded up 15.9% following the results while PENN Entertainment was also up 16.8%.
Read our full analysis of Monarch’s results here and PENN Entertainment’s results here.
There has been positive sentiment among investors in the consumer discretionary - casino operator segment, with share prices up 12.8% on average over the last month. Red Rock Resorts is up 4.3% during the same time and is heading into earnings with an average analyst price target of $71.88 (compared to the current share price of $54.43).
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