Red Rock Resorts (NASDAQ:RRR) Announces Earnings Results, Beats Estimates By $0.16 EPS

Red Rock Resorts (NASDAQ:RRR) announced its quarterly earnings results on Tuesday. The company reported $0.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.51 by $0.16, FiscalAI reports. The business had revenue of $510.26 million for the quarter, compared to the consensus estimate of $500.08 million. Red Rock Resorts had a return on equity of 55.65% and a net margin of 8.43%.The business’s revenue was down 3.0% compared to the same quarter last year. During the same period last year, the business posted $0.95 EPS.

Here are the key takeaways from Red Rock Resorts’ conference call:

• Second-quarter results declined year over year: Las Vegas net revenue fell 2% to $503.2 million and adjusted EBITDA fell 5% to $227.5 million, while consolidated EBITDA declined 9.3% to $208 million. Results were affected by Green Valley Ranch’s hotel renovation, one-time items, and the absence of a prior-year North Fork catch-up payment.
• The company reported stable underlying demand, with higher carded spend per visit and net theoretical win across local, regional, and national customers. Management said gaming revenue was the second-highest for a second quarter in company history, while hotel occupancy, ADR, and food-and-beverage trends remained healthy despite temporary disruptions.
• Durango continues to be a key growth driver, and the Durango North expansion remains on schedule to open in the second half of 2027. North Fork is also progressing toward an early fourth-quarter 2026 opening, with total project costs still expected to be approximately $750 million.
• Near-term results will face continued construction-related disruption at Durango, Sunset Station, and Green Valley Ranch; management estimates about $2.5 million of Durango disruption in the third quarter and approximately $8 million of one-time anniversary and brand-marketing expense. Management also noted that third-quarter Las Vegas operations are typically about 10% below the second quarter and that elevated electricity costs remain an operating expense headwind.
• Red Rock generated $100 million of operating free cash flow in the quarter and returned approximately $198 million to shareholders year to date through dividends and repurchases. The company maintained its $0.26 per-share quarterly dividend and reaffirmed 2026 capital spending guidance of $375 million to $425 million.

Red Rock Resorts Price Performance

Shares of NASDAQ:RRR opened at $60.97 on Thursday. The company has a quick ratio of 0.76, a current ratio of 0.81 and a debt-to-equity ratio of 14.42. The company has a 50-day moving average price of $62.76 and a 200 day moving average price of $59.83. The company has a market cap of $6.40 billion, a P/E ratio of 21.54, a PEG ratio of 4.72 and a beta of 1.36. Red Rock Resorts has a 52 week low of $50.52 and a 52 week high of $68.99.

Red Rock Resorts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be issued a dividend of $0.26 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.04 annualized dividend and a dividend yield of 1.7%. Red Rock Resorts’s dividend payout ratio (DPR) is currently 36.75%.

Hedge Funds Weigh In On Red Rock Resorts

Institutional investors have recently made changes to their positions in the stock. Abel Hall LLC acquired a new position in shares of Red Rock Resorts during the fourth quarter worth $228,000. Entropy Technologies LP bought a new position in Red Rock Resorts during the 4th quarter worth approximately $204,000. Bridgewater Associates LP bought a new position in Red Rock Resorts during the fourth quarter worth $318,000. Numerai GP LLC bought a new position in Red Rock Resorts in the third quarter worth about $211,000. Finally, Ameriprise Financial Inc. acquired a new position in Red Rock Resorts during the 3rd quarter valued at approximately $225,000. 47.84% of the stock is owned by institutional investors and hedge funds.

Red Rock Resorts News Roundup

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

• Positive Sentiment: Quarterly earnings beat expectations: Red Rock Resorts reported second-quarter EPS of $0.67, above the $0.51 analyst consensus, while revenue of $510.3 million exceeded estimates of approximately $500.1 million. The results were described as the company’s second-highest second-quarter performance, despite ongoing renovations. Red Rock Resorts Announces Second Quarter 2026 Results
• Positive Sentiment: Analysts increased price targets: Citizens JMP raised its target from $69 to $71 and maintained a “market outperform” rating. Wells Fargo lifted its target from $75 to $77 and kept an “overweight” rating, implying substantial upside from the provided reference price. Analyst price-target updates
• Positive Sentiment: Shareholder return: The company declared a quarterly dividend of $0.26 per share, payable September 30 to shareholders of record September 15. The indicated annualized yield is approximately 1.7%, providing a modest income-supportive catalyst.
• Neutral Sentiment: Large investment program: Red Rock Resorts plans to spend up to $425 million this year, including renovation and development projects. The spending could support future growth and property quality, but it also increases near-term capital requirements for a company with elevated leverage.
• Negative Sentiment: Year-over-year comparisons weakened: Revenue declined 3.0% from $526.3 million a year earlier, and EPS fell from $0.95 to $0.67. The earnings beat is therefore favorable relative to estimates, but the underlying comparison indicates pressure on current profitability.

Analyst Upgrades and Downgrades

RRR has been the topic of a number of research reports. Jefferies Financial Group reiterated a “buy” rating on shares of Red Rock Resorts in a research note on Thursday, July 2nd. Stifel Nicolaus set a $74.00 price objective on Red Rock Resorts in a report on Wednesday. Weiss Ratings raised shares of Red Rock Resorts from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, July 10th. Zacks Research cut shares of Red Rock Resorts from a “hold” rating to a “strong sell” rating in a research note on Wednesday, May 6th. Finally, Wall Street Zen upgraded Red Rock Resorts from a “sell” rating to a “hold” rating in a research report on Sunday, July 12th. Fourteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Red Rock Resorts has an average rating of “Moderate Buy” and an average price target of $71.88.

Red Rock Resorts Company Profile

Red Rock Resorts, Inc (NASDAQ: RRR) is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.

The company’s flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.