Red Rock Resorts, Inc. RRR is scheduled to report fourth-quarter 2023 results on Feb 7, 2024, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 57.9%.
Anticipating Estimates
For the upcoming quarter, the Zacks Consensus Estimate for Red Rock Resorts’ earnings per share has remained stable at 40 cents over the past seven days. This predicted figure reflects a 60% decline from the $1 per share reported in the corresponding quarter last year. Meanwhile, the consensus revenue estimate stands at $440.4 million, indicating a 3.5% uptick from the year-ago figure.
Red Rock Resorts, Inc. Price and EPS Performance
Red Rock Resorts, Inc. price-eps-surprise | Red Rock Resorts, Inc. Quote
Now, let’s delve into the variables that are likely to sway the upcoming earnings release.
Key Factors in Focus
Red Rock Resorts’ anticipated revenue growth in the fourth quarter is expected to be bolstered by a steady performance in both gaming and non-gaming segments. Additionally, an increase in per-visit spending across its portfolio and the ongoing expansion of new amenities and development projects are projected to have contributed to the company’s performance in the quarter to be reported.
However, a softening demand for casinos in Las Vegas operations may have exerted pressure on the company’s top line. Forecasts suggest a year-over-year dip of 0.8% in casino revenues to $285.1 million in the quarter. Notwithstanding this, revenues from food and beverage and accommodation are anticipated to rise by 4.9% and 7.7% year on year to $77.4 million and $47.8 million, respectively.
The company’s bottom line is likely to bear the brunt of inflationary pressures in essential costs, encompassing food, supplies, energy, and construction. Our model predicts a substantial 46.4% year-over-year surge in total operating expenses to $298.5 million in the fourth quarter.
That said, its cost-saving initiatives, such as operational streamlining, optimized marketing endeavors, and renegotiated vendor and third-party agreements are anticipated to have partially offset the adverse impacts of these headwinds.
What to Expect From the Zacks Model
Our proven model unambiguously forecasts an earnings beat for Red Rock Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the odds of an earnings beat.
Earnings ESP: RRR has an Earnings ESP of +11.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Worth a Look
Investors may also consider other stocks from the Zacks Consumer Discretionary space, as our model indicates that these have the potential to surpass earnings estimates.
MGM Resorts International MGM has an Earnings ESP of +15.51% and a Zacks Rank #3. The company’s shares have surged 9.4% in the past year, with its earnings outperforming estimates in each of the last four quarters, averaging a whopping 292.7% surprise.
Boyd Gaming Corporation BYD has an Earnings ESP of +3.35% and a Zacks Rank #3. Although the company’s shares have declined 1.9% in the past year, its earnings beat estimates in three of the last four quarters, with the average surprise being 6.9%.
Academy Sports and Outdoors, Inc. ASO has an Earnings ESP of +0.76% and a Zacks Rank #3. Academy Sports’ shares have seen a 3.7% increase in the past year, with its earnings surpassing estimates in two of the last four quarters, albeit missing twice, with the average negative surprise being 4.7%.
Stay informed about upcoming earnings releases with the Zacks Earnings Calendar.
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MGM Resorts International (MGM) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report
Academy Sports and Outdoors, Inc. (ASO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
