Red Rock Resorts Inc - Class A

Red Rock Resorts delivered a sharply stronger-than-expected fourth quarter, with earnings per share of $0.95 clearing the $0.51 consensus estimate by 86.27% and revenue of $462.71 million topping analyst forecasts by 5.25% on 8.8% year-over-year growth. The standout driver behind the top-line surge was the newly opened Durango Resort & Casino, which powered Las Vegas operations to $459.37 million in revenue, up 9.5% from the prior year period, with casino revenues alone reaching $301.56 million. Net income, however, fell 36.0% to $108.92 million, largely because Q4 2022 had included a $63.75 million favorable write-down gain that did not repeat, and because interest expense climbed to $48.73 million from $40.18 million, reflecting the debt load taken on to fund the Durango development. Adjusted EBITDA rose a more modest 3.6% to $201.30 million. The Board signaled confidence in the company's cash generation by declaring both a regular quarterly dividend of $0.25 per Class A share and a special dividend of $1.00 per share.