A month has gone by since the last earnings report for Red Rock Resorts (RRR). Shares have added about 12.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Red Rock Resorts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Red Rock Resorts Q3 Earnings Beat Estimates, Revenues Miss
Red Rock Resorts reported third-quarter 2025 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same. The top and bottom lines improved year over year.
Q3 Earnings & Revenues
In the quarter under review, adjusted earnings per share (EPS) came in at 68 cents, topping the Zacks Consensus Estimate of 36 cents. In the prior-year quarter, the company recorded an adjusted EPS of 48 cents.
Quarterly revenues of $475.6 million missed the Zacks Consensus Estimate of $476 million but grew 1.6% year over year from $468 million. The company benefited from strong casino revenues and a $3.9 million contribution from Native American management fees.
Segmental Details of Red Rock Resorts
Las Vegas Operations: During third-quarter 2025, the segment’s revenues totaled $468.6 million, up 0.8% from $464.7 million in the prior-year quarter. Adjusted EBITDA was $209.4 million, up 3.4% from $202.6 million reported in the year-ago quarter.
Native American Management: The company reported revenues and adjusted EBITDA of $3.9 million, reflecting cumulative development fee recognition.
Operating Highlights
Net income in the quarter came in at $76.9 million, up from $55.4 million in the prior-year quarter. Adjusted EBITDA came in at $190.9 million, marking a 4.5% year-over-year increase from $182.7 million. The adjusted EBITDA margin expanded to 40.1%, an increase of 110 basis points from the prior-year period, underscoring operating efficiency and cost discipline.
Other Financial Details
As of Sept. 30, 2025, Red Rock Resorts had cash and cash equivalents of $129.8 million, compared with $164.4 million as of Dec. 31, 2024. Outstanding debt at the third-quarter end was $3.1 billion, compared with $3.35 billion as of Dec 31, 2024.
The board declared a cash dividend of $0.26 per share, payable on Dec. 31, 2025, reflecting management’s continued commitment to shareholder returns.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -5.19% due to these changes.
VGM Scores
Currently, Red Rock Resorts has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Red Rock Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Red Rock Resorts is part of the Zacks Gaming industry. Over the past month, Boyd Gaming (BYD), a stock from the same industry, has gained 8.6%. The company reported its results for the quarter ended September 2025 more than a month ago.
Boyd reported revenues of $1 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $1.72 for the same period compares with $1.52 a year ago.
Boyd is expected to post earnings of $1.92 per share for the current quarter, representing a year-over-year change of -2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Boyd. Also, the stock has a VGM Score of C.
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Red Rock Resorts, Inc. (RRR): Free Stock Analysis Report Boyd Gaming Corporation (BYD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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