Red Rock Resorts (RRR) Up 4.9% Since Last Earnings Report: Can It Continue?

Core Insights - Red Rock Resorts reported strong Q2 2025 earnings, with both earnings and revenues exceeding estimates, indicating positive financial performance [2][3] Financial Performance - Adjusted EPS for Q2 2025 was 95 cents, surpassing the Zacks Consensus Estimate of 40 cents, and up from 59 cents in the prior-year quarter [3] - Quarterly revenues reached $526.3 million, beating the Zacks Consensus Estimate of $485 million, and grew 8.2% year over year from $486.4 million [3] - Net income increased to $108.3 million from $69.8 million in the prior-year quarter [5] - Adjusted EBITDA was $229.4 million, a 13.7% increase from $201.7 million year over year, with an adjusted EBITDA margin expanding to 43.6% from 41.5% [5] Segment Performance - Las Vegas Operations generated revenues of $513.3 million, up 6.2% from $483.2 million in the prior-year quarter, with adjusted EBITDA of $239.4 million, up 7.3% from $223.1 million [4] - Native American Management reported revenues and adjusted EBITDA of $10 million, reflecting cumulative development fee recognition [4] Financial Position - As of June 30, 2025, cash and cash equivalents were $145.2 million, up from $122.8 million as of March 31, 2025, while outstanding debt remained at $3.4 billion [6] - The board declared a cash dividend of $0.25 per share, payable on September 30, 2025, demonstrating commitment to shareholder returns [6] Market Outlook - There has been an upward trend in estimates for Red Rock Resorts, with the consensus estimate shifting by 11.72% recently [7] - The stock has a Growth Score of B and a Momentum Score of B, with an aggregate VGM Score of B, indicating a balanced investment profile [9] Industry Context - Red Rock Resorts operates within the Zacks Gaming industry, where Las Vegas Sands reported revenues of $3.18 billion for the last quarter, reflecting a year-over-year increase of 15% [11] - Las Vegas Sands is expected to post earnings of $0.61 per share for the current quarter, indicating a change of 38.6% from the year-ago quarter [12]