RRR

It has been about a month since the last earnings report for Electronic Arts (EA). Shares have added about 0.9% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Electronic Arts due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Electronic Arts Inc. before we dive into how investors and analysts have reacted as of late. Electronic Arts reported fourth-quarter fiscal 2026 earnings of $1.59 per share, increasing 3.2% year over year but missing the Zacks Consensus Estimate of $2.25 by 29.3%.Revenues increased 12% year over year to $2.12 billion and beat the consensus mark of $2.00 billion.For the fourth quarter of fiscal 2026, EA’s net bookings were $1.86 billion, up 3.6% year over year. Management highlighted Battlefield 6’s record fiscal-year performance and noted Apex Legends delivered its strongest net bookings in the fourth quarter of fiscal 2026, alongside growth across Global Football properties. EA’s full-game revenues (28.7% of total revenues) increased 39.4% year over year to $609 million. Full-game download revenues rose 43.9% year over year to $528 million. Packaged goods increased 15.7% year over year to $81 million.Live services and other revenues (71.3% of total revenues) increased 3.6% year over year to $1.51 billion.By platform, console revenues increased 9.4% year over year to $1.29 billion. PC & Other revenues jumped 30.3% to $555 million (from $426 million). Mobile revenues declined 5.2% to $272 million. EA’s cost discipline showed up in margins even as spending increased. GAAP gross profit increased 15% year over year to $1.76 billion. Gross margin expanded 220 basis points on a year-over-year basis to 82.8%.Operating expenses increased 5.3% year over year to $1.19 billion. As a percentage of revenues, operating expenses contracted from 59.7% in the year-ago quarter to 56.2%. Research and development climbed to $732 million, while marketing and sales rose to $254 million.Even with these increases, operating income on a GAAP basis improved to $564 million, increased 42.8% year over year, lifting the operating margin to 26.6%. As of March 31, 2026, EA had $2.98 billion in cash and short-term investments compared with $2.9 billion as of Dec. 31, 2025.Net cash p...

It has been about a month since the last earnings report for Red Rock Resorts (RRR). Shares have added about 7.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Red Rock Resorts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. Red Rock Resorts reported first-quarter 2026 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line increased year over year, while the bottom line declined.In the quarter under review, adjusted earnings per share (EPS) came in at 73 cents, topping the Zacks Consensus Estimate of 54 cents by 35.2%. In the prior-year quarter, the company recorded an adjusted EPS of 75 cents.Quarterly revenues of $507.3 million missed the Zacks Consensus Estimate of $510 million. However, the top line increased 1.9% year over year.Consolidated adjusted EBITDA margin held at a still-healthy 41.9%, as steady gaming fundamentals helped offset disruption tied to ongoing property projects. Casino revenues remained the anchor in the quarter, increasing to $340.5 million from $333.2 million a year ago. Food and beverage revenues also edged higher to $90.3 million, reflecting continued guest demand across the portfolio’s outlets.Hotel was the notable soft spot within the mix, with room revenues declining to $45.5 million from $50.2 million in the year-ago quarter. Other revenues increased to $26.2 million, while Native American management and development fees added $4.7 million, tied to the North Fork project. The company’s Las Vegas operations continued to set the tone, delivering net revenues of $499.5 million and underscoring management’s view that the locals customer remains resilient despite a choppier macro backdrop later in the quarter.During the quarter, the company reported sustained traction in carded slot play, helped by robust spend per visit and net theoretical win across local, regional and national customer segments. It also emphasized that Durango’s continued ramp and the associated “backfill” at core properties remain central to the portfolio’s growth strategy. Expense discipline was mixed in the period. Selling, general and administrative costs increased to $...

Red Rock Resorts currently trades at $57.51 per share and has shown little upside over the past six months, posting a small loss of 1.8%. The stock also fell short of the S&P 500’s 9.8% gain during that period. Is now the time to buy Red Rock Resorts, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free. We’re swiping left on Red Rock Resorts for now. Here are three reasons we avoid RRR, plus one stock we’d rather own. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Red Rock Resorts grew its sales at a 11.8% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Red Rock Resorts has shown poor cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 13.8%, below what we’d expect for a consumer discretionary business. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, Red Rock Resorts’s ROIC has unfortunately decreased. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. Red Rock Resorts falls short of our quality standards. With its shares trailing the market in recent months, the stock trades at 17.6× forward P/E (or $57.51 per share). This valuation multiple is fair, but we don’t have much confidence in the company. There are superior stocks to buy right now. Let us point you toward our favorite semiconductor picks and shovels play. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is final...

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how consumer discretionary - casino operator stocks fared in Q1, starting with Red Rock Resorts (NASDAQ:RRR). The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Casino operators run gaming resorts and facilities that generate revenue from gambling, hospitality, food and beverage, and entertainment offerings. Tailwinds include pent-up travel demand, expansion into new jurisdictions legalizing gaming, and growing interest in integrated resort developments in Asia and the Middle East. However, the industry faces notable headwinds: heavy regulatory and licensing requirements limit operational flexibility, capital expenditure for property development and renovation is substantial, and revenue is highly sensitive to macroeconomic conditions and consumer confidence. Rising competition from online gambling platforms, regional saturation in mature markets, and geopolitical risks in key international jurisdictions add further uncertainty. The 9 consumer discretionary - casino operator stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.6%. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Founded in 1976, Red Rock Resorts (NASDAQ:RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area. Red Rock Resorts reported revenues of $507.3 million, up 1.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates. Unsurprisingly, the stock is down 7% since reporting and cu...

Red Rock Resorts, Inc. (NASDAQ:RRR) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to US$53.96 in the week after its latest first-quarter results. Revenues were US$507m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.73, an impressive 34% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Red Rock Resorts after the latest results. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Following last week's earnings report, Red Rock Resorts' 14 analysts are forecasting 2026 revenues to be US$2.02b, approximately in line with the last 12 months. Statutory earnings per share are expected to crater 48% to US$1.67 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.06b and earnings per share (EPS) of US$2.13 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates. Check out our latest analysis for Red Rock Resorts It might be a surprise to learn that the consensus price target was broadly unchanged at US$68.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Red Rock Resorts, with the most bullish analyst valuing it at US$77.00 and the most bearish at US$59.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Red Rock Resorts is an easy business to forecast or the the analysts are all using similar assumptions. Taking a look...

Achieved the highest first quarter net revenue in Las Vegas operations history, driven by robust spend per visit and record gaming revenue across local and regional segments. Performance was sustained despite late-quarter headwinds including elevated gas prices, air travel disruptions, and intentional construction-related impacts at core properties. The Durango expansion continues to validate the company's premium investment strategy, successfully driving incremental play from existing customers and expanding the Las Vegas locals market share. Management attributed EBITDA margin compression primarily to the temporary loss of room nights and convention space during the Green Valley Ranch renovation, rather than structural OpEx inflation. Strategic pivot away from high-volume promotion toward premium amenities and best-in-class service has redefined the business model post-COVID, focusing on high-limit slot and table offerings. Food and beverage performance served as a bellwether for consumer health, with higher cover counts and average checks indicating resilient discretionary spending despite macro uncertainty. The $385 million Durango North expansion is scheduled for a Summer 2027 opening, targeting a projected 6,000 new households expected within a 3-mile radius over the next few years. Management expects North Fork to be profitable from day one with an early Q4 2026 opening, projecting a stabilized annual EBITDA contribution of $40 million to $50 million. Guidance for Q2 2026 assumes typical seasonal revenue declines of 8% to 9% from Q1, alongside approximately $11 million to $12 million in total construction-related EBITDA disruption. The development strategy involves layering in new greenfield projects as current investments begin generating returns, with more visibility on the next phase expected by early 2027. Capital allocation remains focused on a balanced approach of executing the 450-acre land bank pipeline while maintaining a target leverage ratio around 4.0x. Green Valley Ranch experienced approximately 27,000 room nights offline in Q1 due to renovations, representing 10% of total inventory and impacting near-term margins. Construction disruption at Durango is expected to reach $2 million to $3 million through the summer until the project's completion as it moves into the heavy construction and steel erection phase. The Sunset Station podium ref...

Red Rock Resorts (RRR) reported Q1 earnings late Wednesday of $0.73 per diluted share, down from $0.

Red Rock Resorts (RRR) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.8 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +35.92%. A quarter ago, it was expected that this company would post earnings of $0.41 per share when it actually produced earnings of $0.75, delivering a surprise of +82.93%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Red Rock Resorts, which belongs to the Zacks Gaming industry, posted revenues of $507.32 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.54%. This compares to year-ago revenues of $497.86 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Red Rock Resorts shares have lost about 10.4% since the beginning of the year versus the S&P 500's gain of 4.3%. While Red Rock Resorts has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Red Rock Resorts was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Stron...

Record first-quarter gaming revenue: Las Vegas operations posted the highest Q1 net revenue in company history (Las Vegas net revenue $499.5M, consolidated net revenue $507.3M), while adjusted EBITDA fell slightly (Las Vegas adj. EBITDA $232.4M, down 1.5%) and margins declined ~113–129 bps largely due to construction and Green Valley Ranch disruptions. Heavy growth and renovation spending: management is advancing the Durango North expansion (~$385 million, opening summer 2027) and expects the North Fork project to remain on pace for an early Q4 2026 opening (total cost ~$750 million), with full-year 2026 capex guidance of $375–425 million. Shareholder returns and leverage focus: the company returned about $170.5 million via a $1.00 special dividend, regular dividends and buybacks (≈635k shares), and ended Q1 with $134M cash and net debt of $3.4B (net debt/EBITDA ~4.07x), with management preferring leverage around 4x though willing to flex for strategic projects. Interested in Red Rock Resorts, Inc.? Here are five stocks we like better. Dallas Mavericks purchase turns LVS stock into a cheaper bet Red Rock Resorts (NASDAQ:RRR) executives highlighted what they described as another “strong quarter” in the company’s first-quarter 2026 earnings call, pointing to record first-quarter gaming revenue and continued momentum at its Durango property even as construction and broader macro noise created headwinds late in the period. Stephen Cootey, executive vice president, chief financial officer, and treasurer, said Las Vegas operations posted the highest first-quarter net revenue and the second-highest first-quarter adjusted EBITDA in company history while maintaining a near-record adjusted EBITDA margin. He said results came “despite several headwinds later in the quarter, including higher gas prices, air travel-related disruption, and temporary construction impacts at and around several of our properties.” → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank For Las Vegas operations, Cootey reported first-quarter net revenue of $499.5 million, up 0.9% year over year, and adjusted EBITDA of $232.4 million, down 1.5%. Adjusted EBITDA margin was 46.5%, down 113 basis points from the prior year. On a consolidated basis, including the North Fork project, net revenue was $507.3 million, up 1.9%, and adjusted EBITDA was $212.6 million, down 1.2%. Consoli...

Red Rock Resorts (RRR) reported $507.32 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 1.9%. EPS of $0.73 for the same period compares to $0.80 a year ago. The reported revenue represents a surprise of -0.54% over the Zacks Consensus Estimate of $510.05 million. With the consensus EPS estimate being $0.54, the EPS surprise was +35.92%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Red Rock Resorts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating Revenues- Casino: $340.52 million compared to the $338.78 million average estimate based on four analysts. The reported number represents a change of +2.2% year over year. Operating Revenues- Room: $45.51 million versus the four-analyst average estimate of $49.37 million. The reported number represents a year-over-year change of -9.3%. Operating Revenues- Other: $26.22 million versus the four-analyst average estimate of $25.37 million. The reported number represents a year-over-year change of +4.2%. Operating Revenues- Food and Beverage: $90.32 million versus the four-analyst average estimate of $92.5 million. The reported number represents a year-over-year change of +1.2%. Net Revenue- Native American management: $4.74 million compared to the $3.17 million average estimate based on three analysts. Net Revenue- Las Vegas operations: $499.52 million compared to the $506.4 million average estimate based on three analysts. The reported number represents a change of +0.9% year over year. Net Revenue- Corporate and other: $3.06 million versus $2.98 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change. Adjusted EBITDA- Corporate and other: $-22.71 million versus $-20.9 million estimated by four analysts on average. Adjusted EBITDA- Las Vegas operations: $232.42 million versus the four-analys...

This article first appeared on GuruFocus. Las Vegas Operations Net Revenue: $499.5 million, up 0.9% from the prior year's first quarter. Las Vegas Operations Adjusted EBITDA: $232.4 million, down 1.5% from the prior year's first quarter. Las Vegas Operations Adjusted EBITDA Margin: 46.5%, a decrease of 113 basis points from the prior year. Consolidated Net Revenue: $507.3 million, up 1.9% from the prior year's first quarter. Consolidated Adjusted EBITDA: $212.6 million, down 1.2% from the prior year's first quarter. Consolidated Adjusted EBITDA Margin: 41.9%, a decrease of 129 basis points from the prior year. Operating Free Cash Flow: $107 million or $1.03 per share, converting 50.3% of adjusted EBITDA. Cash and Cash Equivalents: $134 million at the end of the first quarter. Total Principal Amount of Debt: $3.6 billion, resulting in net debt of $3.4 billion. Net Debt-to-EBITDA Ratio: 4.07 times. Shareholder Returns: Approximately $170.5 million returned through dividends and share repurchases. Capital Expenditure: $117.2 million in the quarter, with full-year expectations between $375 million and $425 million. Warning! GuruFocus has detected 4 Warning Signs with RRR. Is RRR fairly valued? Test your thesis with our free DCF calculator. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Red Rock Resorts Inc (NASDAQ:RRR) reported the highest first-quarter net revenue and the second-highest first-quarter adjusted EBITDA in its history, demonstrating strong performance despite external challenges. The Durango property continues to expand and drive incremental play, reinforcing its position as a meaningful growth driver in RRR's portfolio. RRR's hotel and food and beverage divisions delivered strong results, achieving near-record revenue and profitability. The company successfully converted 50.3% of its adjusted EBITDA into operating free cash flow, generating $107 million or $1.03 per share. RRR returned approximately $170.5 million to shareholders through dividends and share repurchases, showcasing its commitment to disciplined capital allocation. Adjusted EBITDA for the first quarter was down 1.2% from the prior year's first quarter, indicating a slight decline in profitability. The adjusted EBITDA margin decreased by 129 basis points from the prior year, reflecting some margin pres...

Image source: The Motley Fool. Wednesday, Apr. 29, 2026 at 4:30 p.m. ET Chief Financial Officer — Stephen Cootey Chief Executive Officer & Chairman — Frank Lorenzo Fertitta President — Scott Kreeger Vice Chairman — Lorenzo Joseph Fertitta Stephen Cootey: Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Red Rock Resorts First Quarter 2026 Earnings Conference Call. Joining me on the call today are Frank Lorenzo Fertitta, Scott Kreeger and our executive management team. I'd like to remind everyone that our call today will include forward-looking statements under the safe harbor provisions of the United States federal securities laws. Developments and results may differ from those projected. During this call, we will also discuss non-GAAP financial measures. For definitions and complete reconciliation of these figures to GAAP, please refer to the financial tables in our earnings press release Form 8-K and investor deck, which were filed this afternoon prior to the call. Also, please note this call is being recorded. Let's start by noting that the first quarter represented another strong quarter for the company across all key measures. Our Las Vegas operations delivered the highest first quarter net revenue and the second highest first quarter adjusted EBITDA in our history while maintaining near record adjusted EBITDA margin. This performance was achieved despite several headwinds later in the quarter including higher gas prices, air travel-related disruption and temporary construction impacts at and around several of our properties, underscoring the strength and resilience of our business model. In addition to delivering strong first quarter results, we remain very pleased with Durango's performance and the successful revenue backfill at our core properties. Durango continues to expand in the Las Vegas locals market and drive incremental play from our existing customers reinforcing its position as a meaningful growth driver in our portfolio. Since completing our December expansion, adding more than 25,000 square feet of casino space, the premier high limit slot area, and nearly 2,000 additional covered parking spaces. We've continued to see strong financial performance alongside positive guest feedback. With more than 4 months of operating history for the new high limit slot area, results continue to validate our strategy of...