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To be a shareholder in Red Rock Resorts, I need to believe in the resilience and steady growth potential of Las Vegas' locals-focused gaming market, despite its geographic concentration. The recent dividend declaration, following robust earnings growth, reinforces the company's commitment to returning capital, but does not materially change the immediate catalyst, continued success with new property expansions, or lessen the key risk of sustained capital expenditures impacting free cash flow and margins.
The latest earnings report is especially relevant, with second quarter revenue and net income both up year-over-year. This solid financial performance provides important support for the renewed dividend, backing the company’s short-term narrative around property upgrades and expansion as drivers of shareholder value. Despite strong results, investors should also be aware that if project delays or cost overruns were to arise...
Read the full narrative on Red Rock Resorts (it's free!)
Red Rock Resorts' outlook projects $2.2 billion in revenue and $245.8 million in earnings by 2028. This assumes a 2.8% annual revenue growth rate and a $69.1 million increase in earnings from $176.7 million today.
Uncover how Red Rock Resorts' forecasts yield a $63.23 fair value, a 11% upside to its current price.
One fair value estimate from the Simply Wall St Community puts Red Rock Resorts at US$96.83. While this individual view suggests the stock is undervalued, sustained capital spending remains a crucial risk that could alter future expectations for cash flow and profitability.
Explore another fair value estimate on Red Rock Resorts - why the stock might be worth just $96.83!
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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.
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