Core Insights - The article compares Boyd Gaming (BYD) and Red Rock Resorts (RRR) to determine which stock is more attractive to value investors [1] Valuation Metrics - Boyd Gaming has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision compared to Red Rock Resorts, which has a Zacks Rank of 3 (Hold) [3] - BYD has a forward P/E ratio of 12.40, significantly lower than RRR's forward P/E of 34.84 [5] - The PEG ratio for BYD is 2.90, while RRR's PEG ratio is 5.75, suggesting BYD is more reasonably priced relative to its expected earnings growth [5] - BYD's P/B ratio is 4.91, compared to RRR's P/B of 15.76, indicating that BYD is valued more attractively in terms of market value versus book value [6] - These metrics contribute to BYD receiving a Value grade of A, while RRR has a Value grade of C [6] Earnings Outlook - Boyd Gaming is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Group 1 - The Hecht Commodity Report is a comprehensive service covering market movements of 20 different commodities, providing bullish, bearish, and neutral calls along with directional trading recommendations and actionable ideas for traders [1] - The author of the report actively participates in commodities markets through futures, options, ETF/ETN products, and commodity equities, with positions that can change on an intraday basis [2] Group 2 - The article does not provide specific investment recommendations or advice, emphasizing that past performance is not indicative of future results [3]

Core Viewpoint - Red Rock Resorts, Inc. will announce its financial results for the second quarter of 2025 on July 29, 2025, followed by a conference call at 4:30 p.m. ET [1] Group 1: Financial Results Announcement - The financial results for Q2 2025 will be released on July 29, 2025 [1] - A conference call will take place on the same day at 4:30 p.m. ET, including prepared remarks and a Q&A session [1] Group 2: Conference Call Details - Participants can join the conference call by dialing (888) 317-6003 for domestic calls or (412) 317-6061 for international calls, with a passcode of 7806086 [2] - A live audio webcast will be available on the company's website [2] Group 3: Replay Information - A replay of the conference call will be accessible until August 5, 2025, by calling (877) 344-7529 or (412) 317-0088 with conference ID: 5193703 [3] - An audio archive of the call will also be available on the company's website [3] Group 4: Company Overview - Red Rock Resorts is a holding company that manages Station Casinos LLC, a leading provider of gaming and entertainment in Las Vegas [4] - Station Casinos operates various properties in the Las Vegas valley, offering a range of amenities including restaurants, entertainment venues, and traditional casino gaming [4] - The company owns and operates multiple casino resorts and has a 50% interest in Barley's Casino & Brewing Company and other establishments [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) RED ROCK RESORTS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the trans ...

Core Insights - Red Rock Resorts, Inc. (RRR) reported strong first-quarter 2025 results, with both earnings and revenues exceeding the Zacks Consensus Estimate, showing year-over-year growth [1][2] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 80 cents, surpassing the Zacks Consensus Estimate of 47 cents and up from 68 cents in the prior-year quarter [2] - Quarterly revenues reached $497.9 million, exceeding the consensus mark of $494 million by 0.8% and reflecting a 1.8% increase year-over-year [2] - Revenues from Las Vegas operations totaled $495 million, a 1.9% increase from $485.6 million in the prior-year quarter, with adjusted EBITDA for this segment at $235.9 million, up 2.7% year-over-year [3] - Selling, general and administrative expenses were $104.7 million, slightly down from $104.8 million in the prior-year quarter, and net income increased to $86 million from $78.4 million [4] - Adjusted EBITDA for the first quarter was $215.1 million, compared to $209.1 million in the prior-year quarter [5] Financial Position - As of March 31, 2025, RRR had cash and cash equivalents of $150.6 million, down from $164.4 million as of December 31, 2024, with outstanding debt remaining flat at $3.4 billion [6] Market Position - Red Rock Resorts currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [7]

Core Insights - Red Rock Resorts reported revenue of $497.86 million for the quarter ended March 2025, reflecting a 1.8% increase year-over-year and a surprise of +0.82% over the Zacks Consensus Estimate of $493.82 million [1] - The company's EPS was $0.80, up from $0.68 in the same quarter last year, resulting in a significant EPS surprise of +70.21% compared to the consensus estimate of $0.47 [1] Revenue Breakdown - Casino operating revenues were $333.25 million, exceeding the average estimate of $320.70 million, marking a year-over-year increase of +5.2% [4] - Room operating revenues totaled $50.17 million, below the average estimate of $54.99 million, representing a year-over-year decline of -5.1% [4] - Food and beverage operating revenues were $89.27 million, slightly below the estimated $91.49 million, showing a -4.3% change year-over-year [4] - Other operating revenues reached $25.17 million, also below the average estimate of $26.27 million, indicating a -2.7% year-over-year change [4] Net Revenue and EBITDA - Net revenue from Las Vegas operations was $494.95 million, surpassing the average estimate of $489.69 million, with a year-over-year increase of +1.9% [4] - Net revenue from corporate and other operations was $2.91 million, below the average estimate of $3.20 million, reflecting a -12.7% year-over-year change [4] - Adjusted EBITDA for Las Vegas operations was $235.90 million, exceeding the average estimate of $217.26 million [4] - Adjusted EBITDA for corporate and other operations was -$20.82 million, slightly worse than the average estimate of -$20.35 million [4] Stock Performance - Over the past month, shares of Red Rock Resorts have returned -0.9%, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Viewpoint - Red Rock Resorts reported strong quarterly earnings, significantly surpassing consensus estimates, indicating robust financial performance and potential for future growth [1][2]. Financial Performance - The company achieved earnings of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and up from $0.68 per share a year ago, representing a 70.21% earnings surprise [1]. - Revenues for the quarter reached $497.86 million, surpassing the Zacks Consensus Estimate by 0.82%, and increased from $488.9 million year-over-year [2]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42, with projected revenues of $488.53 million, while the estimate for the current fiscal year is $1.67 on $1.95 billion in revenues [7]. - The estimate revisions trend for Red Rock Resorts is favorable, contributing to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]. Industry Context - The Gaming industry, to which Red Rock Resorts belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable environment for stock performance [8]. - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5].

Financial Data and Key Metrics Changes - The first quarter net revenue for Las Vegas operations was $495 million, up 1.9% from the prior year's first quarter [9] - Adjusted EBITDA for Las Vegas operations was $235.9 million, an increase of 2.7% from the prior year [9] - Consolidated first quarter net revenue was $497.9 million, up 1.8% from the prior year [10] - Adjusted EBITDA on a consolidated basis was $215.1 million, up 2.8% from the prior year [10] - The adjusted EBITDA margin for the quarter was 43.2%, an increase of 42 basis points from the prior year [10] - The company converted 43% of adjusted EBITDA into operating free cash flow, generating $93 million or $0.88 per share [10] Business Line Data and Key Metrics Changes - The Durango Casino Resort continued to grow the Las Vegas locals market, adding over 95,000 new customers to the database [5] - The hotel division recorded its second highest first quarter revenue, driven by increased occupancy [11] - The food and beverage division achieved near record performance supported by higher cover counts across outlets [11] - Group sales and catering faced challenges but are expected to improve throughout 2025 [12] Market Data and Key Metrics Changes - The Las Vegas Valley is projected to add approximately 34,000 new households due to demographic growth, particularly in Summerlin [6] - The company expects full revenue recovery over the next couple of years, supported by strong long-term demographic growth [6] Company Strategy and Development Direction - The company is focused on reinvesting in existing properties to enhance amenities while delivering best-in-class customer service [8] - Capital expenditures for 2025 are expected to be between $350 million and $400 million, down $25 million from previous guidance [14] - The company is making investments in Sunset Station and Green Valley Ranch properties to capture growth in the Henderson area [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and resilience of the Las Vegas locals market, noting that the company has historically grown during recessions [40] - The company is well-positioned to manage through any potential recession due to its efficient business model and strong balance sheet [41] - Management highlighted the importance of customer convenience, proximity, and affordability in maintaining consistent visitation [40] Other Important Information - The company declared a special cash dividend of $1 per Class A common share, reflecting confidence in the business model and the Las Vegas locals market [19] - The company has returned approximately $159 million to shareholders in 2025 [19] - The North Fork project is progressing well, with a total expected cost of approximately $750 million [17] Q&A Session Summary Question: OpEx growth and flow-through in Las Vegas - Management noted subdued OpEx growth with a flow-through above 60%, attributed to better sports win performance and flat COGS [23][25] Question: Backfill efforts at Red Rock - Management indicated that backfill is running about six months ahead of schedule, with cannibalization expected to be around 10% [30][31] Question: Special dividend decision - The special dividend reflects a balanced approach to long-term growth and returning capital to shareholders, coinciding with the return of capital from North Fork [35] Question: Resilience of the Las Vegas locals market - Management emphasized that the locals market has shown resilience during past recessions and is expected to continue performing well [40][41] Question: Construction environment and cost management - Management is actively managing procurement to mitigate impacts from tariffs and does not expect material impacts on current projects [46][52] Question: Non-gaming spend trends - Non-gaming spend remains stable, with food and beverage covers up despite slight revenue decline [85] Question: California-based customer demand - Management reported stable visitation from California, with no material impacts noted [93][94] Question: Future of operating leased properties - Management remains open to opportunities but prefers owning properties due to the benefits observed during downturns [76] Question: Changes in the lowest end of the customer database - Management noted stability in the lower end of the database while seeing growth in VIP and regional segments [77] Question: Forward group bookings - Group bookings for the remainder of 2025 are substantially up compared to the previous year [86]

Financial Data and Key Metrics Changes - In the first quarter, Las Vegas operations achieved net revenue of $495 million, up 1.9% year-over-year, and adjusted EBITDA of $235.9 million, up 2.7% year-over-year [7][8] - Consolidated net revenue for the first quarter was $497.9 million, an increase of 1.8% from the previous year, with adjusted EBITDA of $215.1 million, up 2.8% year-over-year [8] - The adjusted EBITDA margin for Las Vegas operations was 47.7%, an increase of 34 basis points, while the consolidated adjusted EBITDA margin was 43.2%, up 42 basis points [7][8] Business Line Data and Key Metrics Changes - The hotel division recorded its second highest first quarter revenue and profit, driven by increased occupancy [9] - The food and beverage division achieved near record performance, supported by higher cover counts across outlets [9] - Group sales and catering faced challenges but are expected to improve throughout 2025 [10] Market Data and Key Metrics Changes - The Durango Casino Resort has added over 95,000 new customers to the database and is on track to become one of the highest margin properties, generating a return net of cannibalization of nearly 16% [4][5] - The Las Vegas Valley is projected to add approximately 34,000 new households due to demographic growth, particularly in Summerlin [5] Company Strategy and Development Direction - The company is focused on reinvesting in existing properties to enhance amenities while maintaining operational discipline [6] - Expansion plans for Durango include adding over 25,000 square feet of casino space and a new parking garage [5][6] - The company is also investing in Sunset Station and Green Valley Ranch properties to capture growth in Henderson [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business prospects moving forward, citing strong customer engagement and robust spending [10] - The company anticipates full revenue recovery from cannibalization effects over the next couple of years [5] - Management highlighted the resilience of the Las Vegas locals market, which has historically performed well during recessions [38] Other Important Information - The company declared a special cash dividend of $1 per Class A common share, reflecting confidence in the business model and market resilience [17] - Capital expenditures for 2025 are expected to be between $350 million and $400 million, down $25 million from previous estimates [12] Q&A Session Summary Question: OpEx growth and flow-through in Las Vegas - Management noted subdued OpEx growth with a flow-through above 60%, attributed to better sports win performance and flat COGS [20][22] Question: Backfill efforts at Red Rock - Management indicated that cannibalization is expected to be about 10% and they are ahead of schedule in backfilling revenue [27] Question: Special dividend and capital allocation - The special dividend reflects a balanced approach to long-term growth and shareholder returns, with ongoing evaluations of capital allocation [32][34] Question: Resilience of the Las Vegas locals market - Management emphasized the market's resilience during past recessions and its ability to maintain consistent visitation [38] Question: Construction environment and cost management - Management is actively managing procurement to mitigate impacts from tariffs and expects minimal material impact on current projects [42][48] Question: Non-gaming spend trends - Non-gaming spend remains stable, with food and beverage covers up despite slight revenue decline [78][80] Question: California-based customer demand - Management reported stable visitation from California, with gas prices making travel to Las Vegas still affordable [91][92]

Financial Performance - Net revenues for Q1 2025 were $497.9 million, an increase of 1.8% from $488.9 million in Q1 2024[6] - Net income for Q1 2025 was $86.0 million, a 9.7% increase from $78.4 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $215.1 million, up 2.8% from $209.1 million in Q1 2024[6] - Las Vegas operations generated net revenues of $495.0 million in Q1 2025, a 1.9% increase from $485.6 million in Q1 2024[6] - Adjusted EBITDA from Las Vegas operations was $235.9 million for Q1 2025, an increase of 2.7% from $229.8 million in Q1 2024[6] - The Company reported a basic earnings per share of $0.76 for Q1 2025, compared to $0.73 in Q1 2024[15] - The Company anticipates continued growth in revenues and EBITDA driven by strong performance in Las Vegas operations[12] Dividends - The Company declared a cash dividend of $0.25 per Class A common share for Q2 2025, payable on June 30, 2025[4] - A special dividend of $1.00 per Class A common share was declared, payable on May 21, 2025[7] Cash and Debt - Cash and cash equivalents as of March 31, 2025, were $150.6 million, with total debt outstanding at $3.4 billion[3]