Red Rock Resorts, Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

Red Rock Resorts reported a quarterly adjusted loss of 17 cents per share, down from earnings of 68 cents a year earlier, as revenue rose 2.8% to $488.70 million. The company posted a quarterly loss of $9.92 million.

Confirmed

Global impact / market context

The loss badly missed the 48 cents per share analysts expected, showing costs or other charges overwhelmed revenue growth. A weaker result can pressure the shares because investors price casinos on profit, not just sales, and six analysts recently cut estimates.

Analyst inference

Shares had risen 4.0% this quarter but lost 15.5% this year. The average rating is buy, with 17 buy or strong buy, 2 hold and no sell, while the median $73.00 target sits 29.4% above the $51.54 last close.

Analyst inference

What to watch

1. Watch whether revenue growth of 2.8% to $488.70 million continues, since sales beat the $477.93 million analysts expected even as profit turned to a loss. Confirmed
2. Watch for management comment on what drove the 17 cents per share loss and whether those costs are temporary or likely to repeat in coming quarters. Proposed
3. Watch estimate revisions, because six analysts cut earnings forecasts in the last 30 days, which could lower the $73.00 median price target if the weak profit trend holds. Analyst inference

Evidence

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