Earnings To Watch: Red Rock Resorts (RRR) Reports Q1 Results Tomorrow

Casino resort and entertainment company Red Rock Resorts (NASDAQ:RRR) will be reporting results tomorrow after market hours. Here's what investors should know.

Red Rock Resorts beat analysts' revenue expectations by 4.8% last quarter, reporting revenues of $462.7 million, up 8.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Red Rock Resorts a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Red Rock Resorts's revenue to grow 13.2% year on year to $490.7 million, improving from the 8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Red Rock Resorts has missed Wall Street's revenue estimates three times over the last two years.

Looking at Red Rock Resorts's peers in the casino operator segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MGM Resorts delivered year-on-year revenue growth of 13.2%, beating analysts' expectations by 3.7%, and Bally's reported revenues up 3.3%, falling short of estimates by 1.4%. MGM Resorts traded up 2.9% following the results while Bally's was down 1.1%.

Read our full analysis of MGM Resorts's results here and Bally's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the casino operator stocks have fared somewhat better, they have not been spared, with share prices down 3.4% on average over the last month. Red Rock Resorts is down 13.4% during the same time and is heading into earnings with an average analyst price target of $63.5 (compared to the current share price of $53.27).

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