Red Rock Resorts Q3 revenue beats estimates on Las Vegas growth

Overview

• US casino and hospitality operator's Q3 revenue rose 2.8% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 slightly beat analyst expectations

• Company swung to Q3 net loss on 50th-anniversary share-based compensation and one-time expenses

Outlook

• Company did not provide specific financial guidance for the upcoming quarter or full year in its press release

Result Drivers

• 50TH ANNIVERSARY COSTS - Net loss reflected $79.1 mln of share-based compensation and $6.9 mln of other one-time expenses

• NATIVE AMERICAN GROWTH - Native American segment revenue rose 59% yr/yr

• LAS VEGAS REVENUE - Las Vegas operations revenue increased 2.2% yr/yr

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

• Wall Street's median 12-month price target for Red Rock Resorts, Inc. is $73.00, about 41.6% above its November 2 closing price of $51.54

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Nov 2 - Ryman Hospitality Q3 revenue beats on group and leisure demand

• Nov 2 - Marriott tops Q3 revenue, profit estimates

• Nov 2 - Choice Hotels Q3 revenue and adjusted EPS beat estimates, raises FY RevPAR outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)