Red Rock Resorts: Key Points to Watch in Q4 Earnings Report
Red Rock Resorts, a well-known casino resort and entertainment company listed on the NASDAQ as RRR, is scheduled to release its latest financial results after trading ends tomorrow. The company surpassed market expectations last quarter, with revenues hitting $468 million, a growth of 13.7% compared to the previous year. However, this quarter saw a dip in earnings and EBITDA figures, falling short of analysts’ projections.
As investors brace for the upcoming earnings report, industry analysts predict that Red Rock Resorts will report revenue figures of around $488.9 million, marking a 5.6% increase year-on-year. Despite this growth, it represents a slowdown from the 8.8% rise in revenue from the same period a year ago. Adjusted earnings per share are estimated to stand at $0.47. Over the last month, analysts covering the company have maintained their forecasts, indicating a level of stability leading up to the earnings announcement. Red Rock Resorts has a history of missing revenue forecasts over the past two years, raising some concern among investors.
For investors looking for insights into what might lie ahead for Red Rock Resorts, comparing results from its peers in the consumer discretionary segment can provide valuable clues. Companies like Boyd Gaming and VF Corp have already revealed their Q4 earnings, with Boyd Gaming reporting a revenue growth of 9.1% year-over-year, outperforming analysts’ projections by 4%. On the other hand, VF Corp saw its revenues rise by 1.9%, beating estimates by 1.2%. These results triggered a mixed market response, with Boyd Gaming’s stock slipping by 1.8% after the announcement and VF Corp rising by 1.4%.
An increase in positive investor sentiment within the consumer discretionary space of the market is evident, with average share prices rising by 3.8% in the last month. Red Rock Resorts mirrored this trend, with its share prices growing by 13.8% over the same period. Setting ambitious goals, the average analyst price target stands at $55.36, exceeding the current market price of $49.96. This data sets the stage for what could be a pivotal earnings release for Red Rock Resorts.
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