Red Rock Resorts Inc - Class A

Red Rock Resorts delivered a mixed third quarter for 2024, posting revenue that edged past expectations while falling short on the bottom line. The Las Vegas locals casino operator grew consolidated net revenues 13.7% year-over-year to $468.02 million, clearing the $461.67 million consensus estimate, with the Durango Resort and Casino, which opened in late 2023, serving as the primary engine of that top-line expansion. Yet profitability told a more complicated story: earnings per diluted share came in at $0.48, missing the $0.52 consensus by 7.69%, as surging interest expense of $58.00 million and a sharp jump in depreciation and amortization to $47.37 million, both tied to the Durango asset base, weighed heavily on net income, which fell 19.0% to $55.39 million. Adjusted EBITDA grew a more modest 4.3% to $182.71 million. Looking ahead, the company has outlined aggressive renovation and expansion plans across multiple properties, signaling continued capital intensity as it bets on long-term growth in the Las Vegas locals market.