Red Rock Resorts (RRR) Q4 Earnings Report Preview: What To Look For

As Red Rock Resorts (RRR) prepares to release its fourth-quarter 2024 earnings on February 11, 2025, investors are eager to see how the casino resort and entertainment company performed in the final quarter of the year. In this article, we will preview the key aspects to look for in RRR's earnings report and provide some context based on recent trends and analyst expectations.



1. Revenue growth trajectory: Red Rock Resorts has experienced steady revenue growth over the past few quarters, with a notable increase in the most recent quarter. In Q1 2024, the company's revenue grew by 13.7% year-over-year (YoY) to $468 million. This growth trajectory is expected to continue in the upcoming earnings report, with analysts forecasting a 5.6% YoY increase in revenue to $488.9 million. However, it is essential to consider that the growth rate may vary depending on various factors, such as market conditions and the company's operational performance.
2. Key factors driving earnings growth: Red Rock Resorts' earnings growth has been driven by several key factors, including consistent revenue growth, operational efficiency, land bank value, the performance of the Durango property, and positive analyst ratings and price targets. These factors have been performing well in the recent past, contributing to Red Rock Resorts' earnings growth. However, it is crucial to consider that earnings growth can be influenced by various factors, and past performance is not indicative of future results.
3. Peer performance in the consumer discretionary segment: Red Rock Resorts' peers in the consumer discretionary segment have shown mixed performance in recent quarters, which has likely influenced investors' sentiment towards RRR. For instance, Boyd Gaming reported year-on-year revenue growth of 9.1% in Q4 2024, beating analysts' expectations by 4%. However, Boyd Gaming's stock traded down 1.8% following the results. On the other hand, VF Corp reported revenues up 1.9%, topping estimates by 1.2%, and its stock was up 1.4%. The overall sentiment among investors in the consumer discretionary segment has been positive, with share prices up 3.8% on average over the last month. Red Rock Resorts, in particular, has seen its stock price increase by 13.8% during the same time period.



In conclusion, investors should pay close attention to Red Rock Resorts' revenue growth trajectory, key factors driving earnings growth, and the performance of its peers in the consumer discretionary segment when evaluating the company's upcoming earnings report. By considering these aspects, investors can make informed decisions about their investments in RRR.