Casino resort and entertainment company Red Rock Resorts (NASDAQ:RRR) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 3.2% year on year to $511.8 million. Its non-GAAP profit of $0.50 per share was 22.5% below analysts’ consensus estimates.
Casino resort and entertainment company Red Rock Resorts (NASDAQ:RRR) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 3.2% year on year to $511.8 million. Its GAAP profit of $0.75 per share was 67.7% above analysts’ consensus estimates.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Let’s dig into the relative performance of Red Rock Resorts (NASDAQ:RRR) and its peers as we unravel the now-completed Q3 casino operator earnings season.
Consumer discretionary businesses are levered to the highs and lows of economic cycles. This volatility leads to big swings in stock prices that have worked in their favor recently -
over the past six months, the industry has returned 13.3% and beat the S&P 500 by 2.8 percentage points.
The stocks featured in this article are seeing some big returns.
Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Since November 2020, the S&P 500 has delivered a total return of 89.1%. But one standout stock has nearly doubled the market - over the past five years, Red Rock Resorts has surged 162% to $57.01 per share. Its momentum hasn’t stopped as it’s also gained 29.6% in the last six months, beating the S&P by 10.1%.
Red Rock Resorts’ third quarter saw modest revenue growth but missed Wall Street’s top-line expectations, while profitability and adjusted EBITDA margins surpassed consensus. Management credited strong Las Vegas locals market fundamentals, continued momentum at Durango Casino Resort, and resilience across non-gaming operations despite ongoing construction. CFO Stephen Cootey emphasized, “This marks the ninth consecutive quarter of record net revenue and the fifth consecutive quarter of record adjusted EBITDA.” The company faced disruption at key properties due to renovation projects, but robust customer traffic and elevated slot play from both local and national segments offset these headwinds.
Casino resort and entertainment company Red Rock Resorts (NASDAQ:RRR) missed Wall Street’s revenue expectations in Q3 CY2025 as sales only rose 1.6% year on year to $475.6 million. Its GAAP profit of $0.41 per share was 6.8% above analysts’ consensus estimates.
Casino resort and entertainment company Red Rock Resorts (NASDAQ:RRR) missed Wall Street’s revenue expectations in Q3 CY2025 as sales only rose 1.6% year on year to $475.6 million. Its GAAP profit of $0.68 per share was 76.4% above analysts’ consensus estimates.
Red Rock Resorts (RRR) reported mixed Q3 2025 results, beating EPS estimates with $0.68 but slightly missing on revenue. The stock showed a muted market reaction.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
What a time it’s been for Red Rock Resorts. In the past six months alone, the company’s stock price has increased by a massive 40.7%, reaching $58 per share. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
