Red Rock Resorts Inc - Class A

Red Rock Resorts delivered a stronger-than-expected first quarter for 2026, with earnings per share of $0.73 beating the $0.49 consensus estimate by 49.65%, even as the bottom line edged down slightly from $0.75 a year earlier. Revenue rose 1.9% year over year to $507.32 million, a hair above the $506.25 million Wall Street had anticipated, with the modest top-line gain driven primarily by a $7.28 million increase in casino revenue to $340.52 million and the addition of $4.74 million in Native American management and development fees, a revenue stream with no prior-year equivalent. The profit story was more complicated, however; operating costs climbed to $363.64 million from $343.51 million, with SG&A and depreciation both rising notably amid the capital investment cycle around newer properties including Durango Resort, compressing operating income to $143.68 million from $154.35 million. Analysts have broadly maintained bullish ratings on the stock, viewing the cost pressures and margin compression as temporary given the company's development pipeline.