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What's in Store for Red Rock Resorts (RRR) in Q4 Earnings?

Red Rock Resorts, Inc. RRR is scheduled to report fourth-quarter 2022 results on Feb 7, 2023, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 71.4%.

How are Estimates Placed?

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 56 cents per share, indicating a gain of 1.8% from 55 cents reported in the year-ago quarter. For revenues, the Zacks Consensus Estimate is pegged at $421.3 million, suggesting a decline of 0.3% from the year-ago quarter’s reported figure.

Let's take a look at how things have shaped up in the quarter.

Factors at Play

Red Rock Resorts’ fourth-quarter performance is likely to have benefited from strong spending per visit across its portfolio and digitalization. Attributes such as best-in-class assets and locations, unparallel distribution and scale, and a solid organic development pipeline are likely to have aided the company’s performance.

However, dismal casino and room revenues are likely to have impacted the company’s top line. We expect casino and room revenues to decline 1.5% and 14.3% year over year to $285.1 million and $37.1 million, respectively. Nevertheless, food and beverage revenues are likely to increase 8.9% year over year to $75 million.  

Rise in labor and commodity costs is likely to have affected the performance. In the third quarter, the company witnessed price inflation in ordinary goods and services such as food costs, supplies, energy costs and construction costs. It also witnessed higher costs on account of labor and supply-chain shortages. These are expected to have occurred in the fourth quarter as well.

Red Rock Resorts, Inc. Price and EPS Surprise

 

Red Rock Resorts, Inc. Price and EPS Surprise
Red Rock Resorts, Inc. Price and EPS Surprise

Red Rock Resorts, Inc. price-eps-surprise | Red Rock Resorts, Inc. Quote

What the Zacks Model Unveils

Our proven model conclusively predicts an earnings beat for Red Rock Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: RRR has an Earnings ESP of +17.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3.

Other Stocks With Favorable Combination

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these too have the right combination of elements to beat estimates this time around.

Royal Caribbean Cruises Ltd. RCL has an Earnings ESP of +0.97% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of the company have declined 15.2% in the past year. RCL has a trailing four-quarter earnings surprise of negative 1.8%, on average.

Crocs, Inc. CROX has an Earnings ESP of +1.79% and a Zacks Rank #3.

Shares of the company have gained 18.2% in the past year. CROX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.2%.

Planet Fitness, Inc. PLNT has an Earnings ESP of +1.30% and a Zacks Rank #3.

Shares of the company have declined 7.1% in the past year. PLNT’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.6%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report

Crocs, Inc. (CROX) : Free Stock Analysis Report

Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report

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

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