Red Rock Resorts (NASDAQ:RRR) Releases Quarterly Earnings Results, Beats Estimates By $0.34 EPS

Red Rock Resorts (NASDAQ:RRR) announced its quarterly earnings results on Tuesday. The company reported $0.75 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.34, FiscalAI reports. The company had revenue of $511.78 million during the quarter, compared to analysts’ expectations of $500.90 million. Red Rock Resorts had a return on equity of 58.12% and a net margin of 9.35%.Red Rock Resorts’s revenue was up 3.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.76 EPS.

Here are the key takeaways from Red Rock Resorts’ conference call:

• Record financial performance — Las Vegas operations set fourth-quarter and full-year records for net revenue and adjusted EBITDA, with full-year adjusted EBITDA of $915.9M (company first over $900M) and nine consecutive record quarters.
• Aggressive growth investments — Major expansions underway including Durango’s $385M 275k sq ft phase (adds ~400 slots and entertainment venues), Sunset Station ~$87M next phase, Green Valley ~$56M, and the fully financed North Fork ($750M) on track for early Q4 2026.
• Construction disruption risk — Management expects near-term disruption (Q1 Green Valley ~ $9M; ongoing Sunset/Durango impacts uncertain) that will pressure results short term, though they remain confident in 2026 EBITDA growth overall.
• Strong capital allocation and balance sheet progress — Returned ~ $297M to shareholders in 2025 (dividends and buybacks), declared a $1 special dividend plus regular dividend, repurchased shares under a $900M program, and reported net debt/EBITDA of 3.87x with continued deleveraging.

Red Rock Resorts Trading Down 2.9%

NASDAQ:RRR opened at $64.87 on Thursday. The company has a quick ratio of 0.70, a current ratio of 0.75 and a debt-to-equity ratio of 10.11. Red Rock Resorts has a twelve month low of $35.09 and a twelve month high of $68.99. The company has a market cap of $6.87 billion, a P/E ratio of 20.73, a price-to-earnings-growth ratio of 2.84 and a beta of 1.49. The business has a 50 day moving average price of $62.05 and a two-hundred day moving average price of $60.05.

Red Rock Resorts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 16th will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Monday, March 16th. Red Rock Resorts’s dividend payout ratio (DPR) is currently 33.23%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Morgan Stanley set a $60.00 price target on shares of Red Rock Resorts in a research report on Friday, January 16th. Citigroup reaffirmed an “outperform” rating on shares of Red Rock Resorts in a research note on Wednesday. Wells Fargo & Company lifted their target price on Red Rock Resorts from $58.00 to $59.00 and gave the stock an “equal weight” rating in a report on Wednesday. Jefferies Financial Group restated a “buy” rating and issued a $79.00 price target on shares of Red Rock Resorts in a report on Wednesday. Finally, Citizens Jmp raised their price target on Red Rock Resorts from $65.00 to $68.00 and gave the stock a “market outperform” rating in a research report on Wednesday, January 14th. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Red Rock Resorts currently has an average rating of “Moderate Buy” and an average target price of $69.64.

Institutional Investors Weigh In On Red Rock Resorts

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RRR. Engineers Gate Manager LP grew its holdings in shares of Red Rock Resorts by 34.6% in the 2nd quarter. Engineers Gate Manager LP now owns 10,427 shares of the company’s stock valued at $543,000 after acquiring an additional 2,683 shares in the last quarter. Hsbc Holdings PLC acquired a new position in Red Rock Resorts during the second quarter valued at approximately $502,000. Tidal Investments LLC grew its stake in Red Rock Resorts by 43.6% in the second quarter. Tidal Investments LLC now owns 8,430 shares of the company’s stock valued at $439,000 after purchasing an additional 2,559 shares in the last quarter. Raymond James Financial Inc. increased its position in shares of Red Rock Resorts by 7.0% during the 2nd quarter. Raymond James Financial Inc. now owns 7,387 shares of the company’s stock worth $384,000 after purchasing an additional 481 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its stake in shares of Red Rock Resorts by 222.3% during the 3rd quarter. Russell Investments Group Ltd. now owns 6,034 shares of the company’s stock worth $368,000 after purchasing an additional 4,162 shares in the last quarter. 47.84% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Red Rock Resorts

Here are the key news stories impacting Red Rock Resorts this week:

• Positive Sentiment: Q4 results beat estimates — EPS $0.75 vs. $0.41 consensus and revenue $511.8M (up 3.2% YoY); management hosted a call and provided slides that investors can review. Red Rock Resorts Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Board declared a regular quarterly dividend ($0.26/share) and a special dividend ($1.00/share), with upcoming ex-dividend dates this month — a near-term cash return that supports investor income. Dividend/Results Release
• Positive Sentiment: Truist reiterated a “buy” and raised its price target to $80 (up from $75), signaling bullish analyst conviction and ~23% upside to the prior price level. Truist price target raise
• Positive Sentiment: Investor commentary highlights operational upside from the Durango property — fund managers are noting this asset as a driver of performance. Durango property note
• Neutral Sentiment: Company provided extensive call transcripts and slide deck — useful for modeling guidance and margin drivers but no material upward revision to full-year EPS guidance was announced. Earnings call transcript
• Neutral Sentiment: Media coverage notes a near‑record year driven by strong local casino demand — positive context but already reflected in Q4 results. Near-record year coverage
• Negative Sentiment: Wells Fargo kept an “equal weight” rating and lifted its target only to $59, implying downside vs. current levels and signaling more cautious sentiment from some sell‑side analysts. Wells Fargo note
• Negative Sentiment: Balance-sheet and liquidity metrics remain watchpoints (low current ratio ~0.75, high debt-to-equity ~10x per recent profile) — leverage could amplify downside in a tougher consumer/interest-rate environment. No link available

Red Rock Resorts declared that its board has authorized a share repurchase program on Tuesday, October 28th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the company to buy up to 4.9% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

About Red Rock Resorts

Red Rock Resorts, Inc (NASDAQ: RRR) is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.

The company’s flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.