Q3 23 EPS

$0.60

BEAT +25.00%

Est. $0.48

Q3 23 Revenue

$411.6M

BEAT +0.06%

Est. $411.4M

vs S&P Since Q3 23

-3.8%

TRAILING MARKET

RRR +68.8% vs S&P +72.7%

Market Reaction

Did RRR Beat Earnings? Q3 2023 Results

Red Rock Resorts delivered a stronger-than-expected bottom line in the third quarter of 2023, with diluted EPS of $0.60 coming in 25.00% above the $0.48 consensus estimate, even as the company navigated modest top-line softness and a meaningful rise … Read more Red Rock Resorts delivered a stronger-than-expected bottom line in the third quarter of 2023, with diluted EPS of $0.60 coming in 25.00% above the $0.48 consensus estimate, even as the company navigated modest top-line softness and a meaningful rise in interest expense. Net revenues slipped 0.7% year over year to $411.61 million, barely edging past the $411.36 million consensus. The primary drag on the quarter was casino revenue, which declined to $272.75 million from $282.39 million a year earlier, though non-gaming categories provided a partial offset, with food and beverage, room, and other revenues each posting year-over-year gains. A sharply higher interest expense burden of $45.50 million, up roughly $11.20 million from the prior-year period, weighed on net income, which fell 28.3% to $68.42 million. Adding to the cautious tone, the company's highly anticipated $780 million Durango Casino and Resort, a key near-term growth catalyst, saw its opening pushed back to December 5 as portions of the property required additional time to complete.

Key Takeaways

  • Non-gaming revenue growth in food and beverage, room, and other categories partially offset casino revenue softness
  • Higher interest expense of $45.5 million vs. $34.3 million in prior year significantly impacted net income
  • Write-downs and other charges of $15.1 million vs. $3.9 million in prior year weighed on operating income
24/7 Wall St

RRR YoY Financials

Q3 2023 vs Q3 2022, source: SEC Filings

24/7 Wall St

RRR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26