Red Rock Resorts Q2 Revenue Falls 3%, Las Vegas Weakness Offsets Beat
RRR sits 27% above its 52-week low of $50.52 on elevated volume (2.1× avg).
Summary
Red Rock Resorts reported Q2 revenue of $510.3M, down 3% year-over-year but above the $502M consensus. Adjusted EBITDA of $208M also beat estimates, yet net income plunged 29% to $76.6M. The top-line decline was driven by weaker Las Vegas operations and a sharp drop in Native American management fees. Despite the beats, the stock traded down to $64.27 from a prior close of $65.61, reflecting concern over the profit drop and lack of forward guidance. This follows the 8-K filed earlier today with the same financials; the Reuters report adds analyst consensus comparisons and market reaction. With 15 buy ratings and a median $72 target, the sell-off may reflect disappointment that beats were not stronger given the 9% EBITDA decline.
At the time of this announcement, RRR was trading at $64.27 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $6.7B. The 52-week trading range was $50.52 to $68.99. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.