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

Red Rock Resorts (NASDAQ:RRR) announced its quarterly earnings data on Tuesday. The company reported ($0.17) earnings per share 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 analysts’ expectations 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 NASDAQ:RRR traded down $0.15 during trading on Tuesday, reaching $51.39. 1,180,971 shares of the stock were exchanged, compared to its average volume of 848,923. The company has a debt-to-equity ratio of 12.33, a quick ratio of 0.63 and a current ratio of 0.68. Red Rock Resorts has a 12-month low of $47.42 and a 12-month high of $68.99. The firm has a market cap of $5.40 billion, a price-to-earnings ratio of 18.16, a price-to-earnings-growth ratio of 3.99 and a beta of 1.40. The firm’s 50-day moving average price is $52.37 and its 200 day moving average price is $58.12.

Analyst Ratings Changes

RRR has been the subject of several research analyst reports. Wolfe Research started coverage on shares of Red Rock Resorts in a research report on Wednesday, September 2nd. They set an “outperform” rating and a $73.00 price target for the company. The Goldman Sachs Group reiterated a “buy” rating and issued a $65.00 price target on shares of Red Rock Resorts in a report on Tuesday, October 13th. Capital One Financial raised shares of Red Rock Resorts to a “buy” rating in a research note on Wednesday, September 9th. JPMorgan Chase & Co. dropped 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. Finally, Morgan Stanley cut their target price on Red Rock Resorts from $61.00 to $59.00 and set an “equal weight” rating on the stock in a research report on Monday, October 19th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $72.06.

Insider Transactions at Red Rock Resorts

In related news, President Scott Kreeger sold 31,159 shares of the firm’s stock in a transaction that occurred on 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 owned 203,881 shares in the company, valued at approximately $12,595,768.18. This trade represents a 13.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 54.34% of the company’s stock.

Red Rock Resorts Company Profile

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.