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Red Rock Resorts (RRR) Q1 Earnings Top Estimates, Revenues Lag

Zacks Equity Research
·3-min read

Red Rock Resorts, Inc. RRR reported first-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. Earnings beat the estimates for the eighth straight quarter. The top and the bottom lines increased on a year-over-year basis.

Earnings & Revenues

In the quarter under review, adjusted earnings per share (EPS) came in at 77 cents, which beat the Zacks Consensus Estimate of 53 cents. In the prior-year quarter, the company had reported a loss per share of 92 cents.

Quarterly revenues of $401.6 million lagged the consensus mark of $406 million. However, the top line improved 14% on a year-over-year basis. The upside was primarily driven by the streamlining of operations, optimization of marketing initiatives and renegotiating vendor and third-party agreements. Meanwhile, adjusted EBITDA in the quarter was $178.7 million, up 14% year over year.

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 first-quarter 2022, revenues in the segment totaled $399.7 million compared with $342.8 million reported in the prior-year quarter. The upside can primarily be attributed to the increased time spent on devices and strong spending per visit across its portfolio. The segments' adjusted EBITDA was $194.6 million, up 21% year over year.

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Native American Management: During the quarter under discussion, the company did not report any revenues in the Native American Management segment. In the prior-year quarter, the company reported segmental revenues of $8.1 million.

Other Financial Details

As of Mar 31, 2022, Red Rock Resorts had cash and cash equivalent of $336.6 million compared with $275.3 million reported in the previous quarter.
Outstanding debt at the end of the first quarter amounted to $2.89 billion, flat year over year.

Zacks Rank & Key Picks

Red Rock Resorts carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Consumer Discretionary sector are Funko, Inc. FNKO, Bluegreen Vacations Holding Corporation BVH and Clarus Corporation CLAR.

Funko sports a Zacks Rank #1 (Strong Buy) at present. FNKO has a trailing four-quarter earnings surprise of 96.2%, on average. Shares of the company have declined 20.6% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Funko's current financial year sales and EPS suggests growth of 22.6% and 26.8%, respectively, from the year-ago period's reported levels.

Bluegreen Vacations sports a Zacks Rank #1 at present. BVH has a trailing four-quarter earnings surprise of 425.1%, on average. The stock has surged 42.4% in the past year.

The Zacks Consensus Estimate for BVH's current financial year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period's reported levels.

Clarus flaunts a Zacks Rank #1 at present. The company has a trailing four-quarter earnings surprise of 12.3%, on average. Shares of the company have surged 21% in the past year.

The Zacks Consensus Estimate for CLAR's 2022 sales and EPS suggests growth of 25.3% and 23.1%, respectively, from the year-ago period's levels.


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Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report

Clarus Corporation (CLAR) : Free Stock Analysis Report

Funko, Inc. (FNKO) : Free Stock Analysis Report

Bluegreen Vacations Holding Corporation (BVH) : Free Stock Analysis Report

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