Red Rock Resorts, Inc. Just Recorded A 34% EPS Beat: Here's What Analysts Are Forecasting Next

Red Rock Resorts, Inc. (NASDAQ:RRR) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of US$526m, some 7.8% above estimates, and statutory earnings per share (EPS) coming in at US$0.55, 34% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Red Rock Resorts' twelve analysts currently expect revenues in 2025 to be US$2.01b, approximately in line with the last 12 months. Statutory earnings per share are forecast to tumble 38% to US$1.85 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.95b and earnings per share (EPS) of US$1.61 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

View our latest analysis for Red Rock Resorts

It will come as no surprise to learn that the analysts have increased their price target for Red Rock Resorts 8.3% to US$61.46on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Red Rock Resorts, with the most bullish analyst valuing it at US$68.00 and the most bearish at US$49.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Red Rock Resorts shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Red Rock Resorts' revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2025 being well below the historical 8.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Red Rock Resorts.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Red Rock Resorts following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Red Rock Resorts going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Red Rock Resorts (1 is concerning!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.