Red Rock Resorts, Inc. RRR reported second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Notably, the metrics surpassed the consensus estimate for the fifth straight quarter. Moreover, the top and bottom line increased on a year-over-year basis. Following the solid results, shares of the company gained 3.6% during after hours trading session on Jul 28.

Earnings & Revenues

In the quarter under review, adjusted earnings per share came in at $1.12, which surpassed the Zacks Consensus Estimate of 32 cents. In the prior-year quarter, the company had reported adjusted loss of $1.01 per share.

Quarterly revenues of $428.2 million beat the consensus mark of $371 million by 15.5%. Moreover, the top line surged 294.7% on a year-over-year basis. The upside was primarily driven by continued rollout of the COVID-19 vaccination program, removal of capacity restrictions and federal stimulus money

Red Rock Resorts, Inc. Price, Consensus and EPS Surprise

Red Rock Resorts, Inc. price-consensus-eps-surprise-chart | Red Rock Resorts, Inc. Quote

Meanwhile, adjusted EBITDA during the quarter came in at $210.2 million against ($17.3) million reported in the prior-year quarter. Moreover, adjusted EBITDA increased 82% from 2019 levels.

Segmental Details

Las Vegas Operations: During second-quarter 2021, revenues in the segment totaled $426.4 million compared with $101 million in the prior-year quarter. The upside was primarily driven by the operations of its properties that were closed in the prior-year quarter owing to the pandemic. However, segmental revenues are down 7% compared with 2019 levels.

Meanwhile, the segments’ adjusted EBITDA came in at $222.6 million against ($12.1) million reported in the prior-year quarter. Moreover, adjusted EBITDA increased 110% from $106 million reported in second-quarter 2019.

Native American Management: During the quarter, the company did not report any revenues and adjusted EBITDA in the Native American Management segment. In the prior-year quarter, the company reported segmental revenues and adjusted EBITDA of $5.9 million and $5.2 million, respectively.

Other Financial Details

As of Jun 30, 2021, Red Rock Resorts had cash and cash equivalent of $91 million compared with $117.9 million in the previous quarter.

Outstanding debt at the end of the second quarter came in at $2.7 billion compared with $2.9 billion as on Mar 31, 2021.

Other Developments

During the second quarter the company continued to operate its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station, Sunset Station and Wildfire properties. However, Palms Casino Resort, Texas Station, Fiesta Rancho and Fiesta Henderson properties remained closed during the quarter.

Zacks Rank & Other Key Picks

Red Rock Resorts currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Some other top-ranked stocks in the same space include Boyd Gaming Corporation BYD, Golden Entertainment, Inc. GDEN and Century Casinos, Inc. CNTY. Boyd Gaming and Golden Entertainment sport a Zacks Rank #1, while Century Casinos carries a Zacks Rank #2 (Buy).

Boyd Gaming has three-five-year earnings per share growth rate of 38.8%.

Golden Entertainment’s 2021 earnings are expected to surge 128%.

Century Casinos has a trailing four-quarter earnings surprise of 233.1%, on average.

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Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report

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