{"id":239878,"date":"2022-10-28T00:37:10","date_gmt":"2022-10-28T05:37:10","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=239878"},"modified":"2022-10-28T13:33:08","modified_gmt":"2022-10-28T18:33:08","slug":"red-rock-q3-earnings-decent-but-other-catalyst-remain","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/","title":{"rendered":"Red Rock Q3 Earnings Not Exciting, Some Pleasant Surprises Delivered"},"content":{"rendered":"

Red Rock Resorts (NASDAQ: RRR) delivered third-quarter earnings after the close of US markets on Thursday, telling investors it earned 83 cents a share on revenue of $414 million.<\/p>\n

\"Red
Red Rock Resort in Summerlin, Nev. The operator’s Q3 results were decent and one analyst is optimistic. (Image: Details In Luxury)<\/figcaption><\/figure>\n

While net income fell to $95.5 million from $117.9 million a year earlier, the initial reaction to the results suggests neither disappointment nor elation. In this volatile market environment, investors can live with that. Further examination of the casino operator\u2019s report indicates there are some positive surprises to consider.<\/p>\n

That\u2019s the case laid out by Stifel analyst Steven Wieczynski, who rates shares of Red Rock \u201chold,\u201d with a new price target of $46, up from $45. That implies upside of nearly 18% from Thursday’s close.<\/p>\n

Turning to operations, the Las Vegas Locals market is clearly booming, and we see no reason why it should slow down anytime soon,\u201d <\/strong>wrote the analyst. \u201cWe continue to be impressed at how RRR is managing\/running their business at this point and converting more earnings before interest, taxes, depreciation and amortization (EBITDA) into free cash flow which has\/should rapidly improve (relatively speaking as their balance sheet is already pretty clean compared to peers) their balance sheet.\u201d<\/strong><\/p><\/blockquote>\n

In addition to its namesake venue in Summerlin and Green Valley Ranch in Henderson, Red Rock operates multiple gaming properties under the Station brand<\/a> throughout the Las Vegas area. The company also runs 10 Wildfire casinos, including seven in Henderson, according to its website.<\/p>\n

Red Rock Catalysts<\/h2>\n

Some analysts view Red Rock as one of the more catalyst-rich gaming stories, with potential sparks including consistently strong operating margins and the ongoing vibrancy of the Las Vegas locals segment \u2013 imperative to the operator\u2019s investment thesis, because that\u2019s where all of its gaming venues are located.<\/p>\n

\n

By some estimates, Red Rock could<\/a> potentially double the number of large integrated resorts it runs by 2030. That\u2019s while driving earnings before interest, taxes, depreciation, and amortization (EBITDA) higher by 70%. That expansion is likely rooted in part in current Las Vegas expansion plans.<\/p>\n<\/div>\n

Those include a Wildfire casino in downtown, which could open later this year, the Durango in the southwest part of the city, and a major overhaul of the now-shuttered Wild Wild West<\/a>.<\/p>\n

\u201cWe look to 2023 to drive our valuation, as we believe it provides the clearest indication of what the business might look like in a recessionary operating environment,\u201d added Wieczynski.<\/p>\n

Red Rock Real Estate Not Fully Appreciated<\/h2>\n

The Stifel analyst also noted Red Rock\u2019s \u201cundeveloped land bank continues to be underappreciated.\u201d<\/p>\n

In July, the operator announced the purchase of 126 acres<\/a> of land south of the Strip for $172 million \u2014 boosting its unused land holdings in the Las Vegas Valley to nearly 430 acres.<\/strong><\/p>\n

Based on current Las Vegas commercial land values and the company\u2019s market capitalization of $3.97 billion, it\u2019s not a stretch to say investors are in fact not fully appreciating Red Rock\u2019s real estate holdings.<\/p>\n","protected":false},"excerpt":{"rendered":"

Red Rock Resorts (NASDAQ: RRR) delivered third-quarter earnings after the close of US markets on Thursday, telling investors it earned 83 cents a share on revenue of $414 million. While net income fell to $95.5 million from $117.9 million a year earlier, the initial reaction to the results suggests neither disappointment nor elation. In this […]<\/p>\n","protected":false},"author":46,"featured_media":239879,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,81886],"tags":[81903,23],"acf":[],"yoast_head":"\nRed Rock Q3 Earnings Decent, But Other Catalyst Remain<\/title>\n<meta name=\"description\" content=\"Red Rock earnings weren't exciting, but the casino operator has other positives.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Red Rock Q3 Earnings Decent, But Other Catalyst Remain\" \/>\n<meta property=\"og:description\" content=\"Red Rock earnings weren't exciting, but the casino operator has other positives.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-28T05:37:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-28T18:33:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/rrr.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/\",\"url\":\"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/\",\"name\":\"Red Rock Q3 Earnings Decent, But Other Catalyst Remain\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/rrr.jpg\",\"datePublished\":\"2022-10-28T05:37:10+00:00\",\"dateModified\":\"2022-10-28T18:33:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Red Rock earnings weren't exciting, but the casino operator has other positives.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-q3-earnings-decent-but-other-catalyst-remain\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/rrr.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/rrr.jpg\",\"width\":1280,\"height\":720,\"caption\":\"Red Rock Resort in Summerlin, Nevada. 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