A month has gone by since the last earnings report for Red Rock Resorts (RRR Quick QuoteRRR - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Red Rock Resorts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Red Rock Resorts Q1 Earnings Top Estimates, Revenues Lag

Red Rock Resorts reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line increased year over year, while the bottom line declined from the prior-year quarter’s figure.

Earnings & Revenues

In the quarter under review, adjusted earnings per share (EPS) came in at 68 cents, outpacing the Zacks Consensus Estimate of 50 cents. In the prior-year quarter, it recorded an adjusted EPS of 75 cents.

Quarterly revenues of $488.9 million missed the Zacks Consensus Estimate of $489 million. The top line rose 12.7% on a year-over-year basis. The upside was backed by strong visitation and play in local, regional and national segments. Also, strong spend per visit (on the majority of card-to-play options) added to the positives.

Las Vegas Operations

During first-quarter 2024, revenues from Las Vegas operations totaled $485.6 million, up 12.9% from $430 million in the prior-year quarter. Adjusted EBITDA was $229.8 million, up 7.3% year over year.

Operating Highlights

During the first quarter, selling, general and administrative expenses came in at $104.8 million compared with $92.5 million reported in the prior-year quarter.

Net income during the quarter came in at $78.4 million compared with $85.5 million reported in the prior-year quarter. Our model estimated the metric at $87.1 million.

Adjusted EBITDA in the first quarter came in at $209.1 million compared with $194.2 million reported in the prior-year quarter.

Other Financial Details

As of Mar 31, 2024, Red Rock Resorts had cash and cash equivalents of $129.7 million compared with $137.6 million as of Dec 31, 2023.

Outstanding debt at the first-quarter end was $3.5 billion compared with $3.4 billion in the preceding quarter.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

Currently, Red Rock Resorts has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Red Rock Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Red Rock Resorts is part of the Zacks Gaming industry. Over the past month, Boyd Gaming (BYD Quick QuoteBYD - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended March 2024 more than a month ago.

Boyd reported revenues of $960.52 million in the last reported quarter, representing a year-over-year change of -0.4%. EPS of $1.51 for the same period compares with $1.71 a year ago.

For the current quarter, Boyd is expected to post earnings of $1.47 per share, indicating a change of -7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.

Boyd has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.