Casino resort and entertainment company Red Rock Resorts (NASDAQ:RRR) will be reporting results tomorrow after the bell. Here’s what investors should know.
Red Rock Resorts beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $468 million, up 13.7% year on year. It was a slower quarter for the company, with a miss of analysts’ EPS and EBITDA 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 5.6% year on year to $488.9 million, slowing from the 8.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 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 consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Boyd Gaming delivered year-on-year revenue growth of 9.1%, beating analysts’ expectations by 4%, and VF Corp reported revenues up 1.9%, topping estimates by 1.2%. Boyd Gaming traded down 1.8% following the results while VF Corp was up 1.4%.
Read our full analysis of Boyd Gaming’s results here and VF Corp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.8% on average over the last month. Red Rock Resorts is up 13.8% during the same time and is heading into earnings with an average analyst price target of $55.36 (compared to the current share price of $49.96).
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