Red Rock Resorts has reported its financial results for the fourth quarter, showcasing a robust performance that surpassed estimates. The company reported quarterly revenue of $425.5 million, which exceeded the Zacks consensus estimate by 0.74 percent. This revenue figure represented a slight increase from the $422.35 million reported in the same quarter of the previous year.
Profit and Earnings:
For the fourth quarter, Red Rock Resorts achieved a profit of $91.8 million, translating to earnings of $1.49 per share. When adjusted for gains related to asset impairment, earnings per share amounted to $1. This performance exceeded the expectations of Wall Street analysts. Among eight analysts surveyed by Zacks Investment Research, the average estimate was for earnings of 56 cents per share.
Revenue and EBITDA from Las Vegas Operations:
During the fourth quarter, net revenues from Las Vegas operations totaled $419.6 million, indicating a minor decrease of 0.2 percent compared to the $420.5 million reported in the same period of the previous year. The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from Las Vegas operations was $206.9 million, a decrease of 0.9 percent from $208.7 million in the corresponding period.
Full-Year Performance:
For the entirety of 2022, net revenues from Las Vegas operations reached $1.65 billion, marking a 3 percent increase from the $1.60 billion recorded in 2021. Adjusted EBITDA for the year amounted to $812.8 million, signifying a growth of 1.6 percent from $799.8 million in the previous year.
Company Insights:
Stephen Cootey, Executive Vice President, CFO, and Treasurer of Red Rock Resorts, highlighted the company’s achievements, emphasizing that the results represented their best year in company history. He noted the strong performance across regional and out-of-town customer segments, attributing the success to solid spend per visit across their portfolio.
Cootey pointed out that the new Wildfire Casino in downtown Las Vegas is set to open on February 10. With a 21,000 square-foot area, the casino will feature 200 slot machines, electronic table games, a sportsbook, and two restaurants. He also provided an update on the $750 million Durango Station resort, stating that it remains on track for a late 2023 opening in the southwest valley.
Red Rock Resorts’ Q4 financial results showcased a performance that exceeded expectations, demonstrating the company’s resilience and growth in a dynamic market. The success was attributed to strong customer segments, solid spend per visit, and promising developments in the company’s portfolio. As Red Rock Resorts continues to expand and innovate, its ability to adapt to evolving market trends will be key to its continued success.