Red Rock Resorts Shares Swing 3.7% as CBRE Cites North Fork Cash Flows

Red Rock Resorts, Inc. shares swung 3.7% on Wednesday as investors weighed the casino operator’s third-quarter results, with CBRE pointing to North Fork as a potential source of future cash flow.

Revenue increased 2.8% from a year earlier to $488.7 million, beating estimates by $10.76 million. Las Vegas market revenue set a record at $479.1 million. GAAP earnings per share were negative 17 cents, missing estimates by 61 cents, in Red Rock’s third-quarter revenue report.

Consolidated adjusted EBITDA fell 4.3%. Higher utility costs and $5.8 million in anniversary-related expenses weighed on results, while Las Vegas margins declined about 200 basis points despite revenue growth.

On Wednesday, Nov. 4, Red Rock shares were 26% below their 52-week high. North Fork is expected to increase management-fee income, while an $86 million development advance is expected to begin generating cash interest and principal payments.