Red Rock Resorts Inc - Class A

Red Rock Resorts delivered a mixed second quarter for 2024, beating on revenue while falling short on the bottom line, as the costs of its Durango Resort & Casino expansion weighed heavily on earnings. Net revenue climbed 16.9% year-over-year to $486.40 million, edging past the $476.82 million consensus estimate by 2.01%, with Las Vegas operations accounting for nearly all of the top-line contribution at $483.21 million. However, diluted EPS came in at $0.59, missing the $0.66 analyst consensus by 10.61%, as sharply higher interest expense of $57.43 million, up from $44.34 million a year ago, and increased depreciation of $46.70 million, reflecting the capital deployed for Durango, compressed net income to $69.81 million from $74.91 million in the prior-year period. Adjusted EBITDA grew 15.0% to $201.66 million, underscoring solid operational performance, but the debt burden associated with the new property proved to be the defining headwind for the quarter.