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

Red Rock Resorts (NASDAQ:RRR) released its earnings results on Tuesday. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.62), FiscalAI reports. Red Rock Resorts had a return on equity of 56.19% and a net margin of 8.43%. The company had revenue of $488.70 million for the quarter, compared to the consensus estimate of $478.13 million.

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 NASDAQ RRR traded down $0.15 during midday trading on Tuesday, hitting $51.39. 1,180,971 shares of the company’s stock were exchanged, compared to its average volume of 848,923. Red Rock Resorts has a 12 month low of $47.42 and a 12 month high of $68.99. The company’s 50 day moving average price is $52.37 and its 200 day moving average price is $58.12. The company has a quick ratio of 0.63, a current ratio of 0.68 and a debt-to-equity ratio of 12.33. The firm has a market capitalization of $5.40 billion, a PE ratio of 18.16, a price-to-earnings-growth ratio of 3.99 and a beta of 1.40.

Insider Buying and Selling at Red Rock Resorts

In other news, President Scott Kreeger sold 31,159 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $61.78, for a total value 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 can be accessed through this link. 54.34% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several research analysts have weighed in on RRR shares. Citizens Jmp boosted their price target on Red Rock Resorts from $69.00 to $71.00 and gave the stock a “market outperform” rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. cut their price objective on Red Rock Resorts from $72.00 to $71.00 and set an “overweight” rating for the company in a report on Tuesday, October 20th. Wells Fargo & Company raised their target price on shares of Red Rock Resorts from $77.00 to $78.00 and gave the company an “overweight” rating in a research note on Monday, October 19th. Texas Capital upgraded shares of Red Rock Resorts to a “strong-buy” rating in a report on Wednesday, September 9th. Finally, Citigroup lowered their target price on shares of Red Rock Resorts from $78.00 to $69.00 and set a “buy” rating on the stock in a report on Monday, October 12th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Red Rock Resorts currently has a consensus rating of “Moderate Buy” and a consensus price target of $72.06.

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.