Casino operator Red Rock's  Q3 revenue beats estimates, partly helped by Las Vegas operations

Overview

• Red Rock Q3 revenue rose 1.6% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 beats analyst estimates, increasing 4.5% yr/yr

• Company authorizes $300 mln more for share repurchase program, extending to 2027

Outlook

• Company did not provide specific guidance for future quarters or full year in its press release

Result Drivers

• LAS VEGAS OPERATIONS - Revenue from Las Vegas operations increased slightly, contributing to overall revenue growth

• NET INCOME GROWTH - Significant increase in net income attributed to improved operational efficiency and cost management

• NATIVE AMERICAN REVENUE - Development fees from Native American activities contributed to revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

• Wall Street's median 12-month price target for Red Rock Resorts Inc is $65.00, about 10.1% above its October 27 closing price of $58.44

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn50RmVza

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