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

Key Points

• Red Rock Resorts reported quarterly EPS of -$0.17, missing consensus by $0.62, while revenue of $488.7 million exceeded analyst estimates of $478.1 million.
• Las Vegas operations posted record third-quarter revenue of $479.1 million, up 2.3% year over year, but adjusted EBITDA fell 2.3% as margins narrowed amid higher costs and construction disruptions.
• 2026 capital expenditure guidance rose to $550 million-$570 million, driven by project cost overruns, expanded scope, and faster construction spending; Durango North’s estimated investment increased to about $430 million.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) released its quarterly earnings results on Tuesday. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of $0.45 by ($0.62), FiscalAI reports. Red Rock Resorts had a net margin of 8.43% and a return on equity of 56.19%. The business had revenue of $488.70 million during the quarter, compared to analyst estimates 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 Trading Down 0.3%

Shares of RRR traded down $0.15 on Tuesday, hitting $51.39. 1,180,971 shares of the stock traded hands, compared to its average volume of 848,923. Red Rock Resorts has a 1 year low of $47.42 and a 1 year high of $68.99. The stock's 50 day moving average is $52.37 and its two-hundred day moving average is $58.12. The firm has a market capitalization of $5.40 billion, a P/E ratio of 18.16, a P/E/G ratio of 3.99 and a beta of 1.40. The company has a quick ratio of 0.63, a current ratio of 0.68 and a debt-to-equity ratio of 12.33.

Insider Buying and Selling

In other Red Rock Resorts news, President Scott Kreeger sold 31,159 shares of the business's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $61.78, for a total value of $1,925,003.02. Following the completion of the transaction, the president directly owned 203,881 shares in the company, valued at approximately $12,595,768.18. The trade was a 13.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 54.34% of the company's stock.

Analyst Upgrades and Downgrades

RRR has been the subject of several recent research reports. Benchmark reissued a "buy" rating on shares of Red Rock Resorts in a research report on Monday, August 31st. Wells Fargo & Company boosted their price target on Red Rock Resorts from $77.00 to $78.00 and gave the stock an "overweight" rating in a report on Monday, October 19th. Weiss Ratings restated a "hold (c+)" rating on shares of Red Rock Resorts in a research report on Tuesday, October 6th. Bank of America increased their price objective on Red Rock Resorts from $60.00 to $70.00 and gave the company a "neutral" rating in a research note on Monday, July 20th. Finally, Texas Capital raised Red Rock Resorts to a "strong-buy" rating in a research note on Wednesday, September 9th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average 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.

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