Red Rock Resorts, Inc. (NASDAQ:RRR) Shareholders to Receive $0.26 Quarterly Dividend

Key Points

• Red Rock Resorts declared a quarterly dividend of $0.26 per share, payable December 31 to shareholders of record December 15. That equals $1.04 annually and a yield of about 2%.
• The dividend appears supported by earnings: the payout ratio is 58.8%, and analysts expect next year’s earnings to cover the annual dividend at an estimated 57.5% payout ratio.
• Quarterly revenue rose 2.8% year over year to $488.7 million, beating estimates, but EPS of -$0.17 missed the $0.45 consensus and fell from $0.68 a year earlier.

Red Rock Resorts, Inc. (NASDAQ:RRR - Get Free Report) declared a quarterly dividend on Tuesday, November 3rd. Shareholders of record on Tuesday, December 15th will be paid a dividend of $0.26 per share on Thursday, December 31st. This represents a $1.04 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Tuesday, December 15th.

Red Rock Resorts has raised its dividend payment by an average of 0.8% annually over the last three years. Red Rock Resorts has a payout ratio of 58.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Red Rock Resorts to earn $1.81 per share next year, which means the company should continue to be able to cover its $1.04 annual dividend with an expected future payout ratio of 57.5%.

Red Rock Resorts Price Performance

Red Rock Resorts stock opened at $51.39 on Wednesday. The firm has a market capitalization of $5.40 billion, a P/E ratio of 18.16, a PEG ratio of 4.25 and a beta of 1.42. Red Rock Resorts has a 1 year low of $47.42 and a 1 year high of $68.99. The business has a 50-day moving average of $52.18 and a 200-day moving average of $58.06. The company has a current ratio of 0.68, a quick ratio of 0.63 and a debt-to-equity ratio of 12.33.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported ($0.17) EPS for the quarter, missing analysts' consensus estimates of $0.45 by ($0.62). Red Rock Resorts had a net margin of 8.43% and a return on equity of 56.19%. The company had revenue of $488.70 million during the quarter, compared to the consensus estimate of $478.13 million. During the same period last year, the company earned $0.68 earnings per share. The business's revenue was up 2.8% compared to the same quarter last year. On average, equities analysts anticipate that Red Rock Resorts will post 1.54 EPS for the current year.

Key Headlines Impacting Red Rock Resorts

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

• Positive Sentiment: Red Rock declared a quarterly dividend of $0.26 per share, or $1.04 annualized, representing a yield of about 2%. Dividend announcement
• Positive Sentiment: A valuation article argues RRR could be about 30% undervalued, citing record Las Vegas revenue and expansion investment. This provides a bullish counterpoint to the earnings concerns. Valuation analysis
• Neutral Sentiment: Q3 revenue increased 2.8% year over year to $488.7 million, topping analysts’ estimates of $478.1 million. Third-quarter results
• Negative Sentiment: Despite the revenue beat, earnings fell well short of consensus and were down from $0.68 per share a year earlier. The earnings shortfall is likely weighing on investor sentiment. Q3 earnings miss
• Negative Sentiment: Citizens lowered its price target to $70 and said investors view the results as a miss. Although the revised target remains above the stock’s recent price, the cut signals reduced optimism after the report. Citizens price-target update

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.

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