Red Rock Resorts Inc - Class A

Red Rock Resorts delivered a standout fourth quarter, posting earnings per share of $0.76 and beating the $0.48 consensus estimate by 58.73%, even as net income slipped 19.5% year over year to $87.72 million amid rising costs tied to the company's aggressive expansion cycle. Revenue came in at $495.69 million, ahead of the $490.20 million consensus and up 7.1% from the year-ago period, with casino revenues serving as the primary engine, climbing to $326.54 million from $301.66 million. The clearest explanation for the margin pressure lies in the capital-intensive buildout anchored by the Durango Resort and Casino, which pushed depreciation and amortization to $48.16 million from $36.17 million while interest expense rose to $56.17 million against a debt load of roughly $3.40 billion. Underlying operational health held firm, however, with adjusted EBITDA essentially flat at $202.40 million. The board declared a quarterly dividend of $0.25 per Class A share, payable March 31, 2025.