Red Rock Resorts (NASDAQ:RRR) Posts Earnings Results, Misses Expectations By $0.62 EPS

Red Rock Resorts (NASDAQ:RRR) issued its earnings results on Tuesday. The company reported ($0.17) earnings per share for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.62), FiscalAI reports. Red Rock Resorts had a net margin of 5.79% and a return on equity of 44.10%. The company had revenue of $488.70 million during the quarter, compared to analyst estimates of $478.13 million. During the same quarter in the prior year, the business earned $0.68 EPS. The business’s quarterly revenue was up 2.8% on a year-over-year basis.

Here are the key takeaways from Red Rock Resorts’ conference call:

• Las Vegas operations delivered record third-quarter revenue of $479.1 million, up 2.3% year over year, supported by healthy gaming trends, higher carded spend per visit, and increased net theo. Food and beverage revenue also reached a third-quarter record, while hotel revenue grew despite temporarily losing more than 4,500 room nights at Green Valley Ranch.
• Las Vegas adjusted EBITDA declined 2.3% to $204.6 million, with margin contracting 199 basis points to 42.7%; consolidated EBITDA fell 4.3% to $182.6 million. Management cited a difficult comparison from a prior-year bad-debt recovery, higher seasonal electricity costs, construction disruption, and a $5.8 million 50th-anniversary expense.
• 2026 capital expenditure guidance increased to $550 million-$570 million, primarily due to Green Valley Ranch cost overruns, expanded scope at Durango North, and accelerated construction spending. Durango North’s estimated investment rose to approximately $430 million, although management continues to target a roughly 20% return on investment.
• Durango continues to perform strongly, adding more than 168,000 customers to the database, while its 275,000-square-foot North expansion remains scheduled to open in the third quarter of 2027. Green Valley Ranch renovations are receiving positive customer feedback, and Sunset Station’s redevelopment is progressing toward completion in mid-2027.
• North Fork opened on October 27 with strong initial demand and positive customer feedback. Red Rock expects recurring management fees, received a $26 million initial development-fee installment, and began receiving cash principal and interest on its approximately $86 million development note.

Red Rock Resorts Stock Performance

Shares of Red Rock Resorts stock opened at $48.66 on Thursday. Red Rock Resorts has a one year low of $47.42 and a one year high of $68.99. The firm has a market capitalization of $5.11 billion, a price-to-earnings ratio of 24.58, a PEG ratio of 4.72 and a beta of 1.42. The business has a 50-day simple moving average of $51.96 and a 200 day simple moving average of $57.99. The company has a debt-to-equity ratio of 12.33, a current ratio of 0.68 and a quick ratio of 0.63.

Red Rock Resorts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be paid a $0.26 dividend. The ex-dividend date is Tuesday, December 15th. This represents a $1.04 annualized dividend and a dividend yield of 2.1%. Red Rock Resorts’s dividend payout ratio (DPR) is currently 52.53%.

Insider Transactions at Red Rock Resorts

In other news, President Scott Kreeger sold 31,159 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $61.78, for a total transaction of $1,925,003.02. Following the transaction, the president directly owned 203,881 shares of the company’s stock, valued at $12,595,768.18. This represents a 13.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 54.34% of the company’s stock.

Key Red Rock Resorts News

Here are the key news stories impacting Red Rock Resorts this week:

• Positive Sentiment: Red Rock plans to invest $430 million in Durango North, targeting a Q3 2027 opening and a 20% return on investment. The project offers a potential longer-term growth driver, though it requires substantial upfront spending. Article
• Positive Sentiment: The company declared a quarterly dividend of $0.26 per share, equivalent to $1.04 annually and a roughly 2.1% yield at the cited share price. Dividend announcement
• Neutral Sentiment: Analysts continued to express support after the post-earnings decline. JPMorgan cut its price target to $64 but kept an Overweight rating; Citizens JMP lowered its target slightly to $70 while maintaining Market Outperform. The ratings remain favorable, but the target reductions suggest more cautious expectations. Analyst support article
• Negative Sentiment: Q3 revenue rose 2.8% year over year to $488.7 million and exceeded estimates, but earnings per share fell short of consensus and were down from $0.68 a year earlier. The earnings miss appears to be the key driver of the post-results selling. Q3 results

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on RRR. JPMorgan Chase & Co. reduced their price objective on shares of Red Rock Resorts from $71.00 to $64.00 and set an “overweight” rating on the stock in a research note on Wednesday. Texas Capital upgraded Red Rock Resorts to a “strong-buy” rating in a research report on Wednesday, September 9th. Capital One Financial raised shares of Red Rock Resorts to a “buy” rating in a research note on Wednesday, September 9th. The Goldman Sachs Group reiterated a “buy” rating and set a $65.00 price objective on shares of Red Rock Resorts in a research report on Tuesday, October 13th. Finally, Bank of America lifted their target price on shares of Red Rock Resorts from $60.00 to $70.00 and gave the stock a “neutral” rating in a research note on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $70.35.

About Red Rock Resorts

Red Rock Resorts, Inc is a gaming, entertainment and hospitality company based in Las Vegas, Nevada. Through its principal operating subsidiary, Station Casinos, the company develops, owns and operates casino resorts and other gaming properties, primarily serving the Las Vegas locals market.

Its portfolio includes destination-style properties such as Red Rock Casino Resort & Spa, Green Valley Ranch Resort Spa and Casino, and Durango Casino & Resort, along with neighborhood casinos including Palace Station, Boulder Station, Santa Fe Station and several Wildfire locations.