Revenue Increase Expected
Rolls-Royce Holdings PLC, a FTSE 100 engineering and defense company, is set to disclose its results for 2023 on Thursday. According to a Visible Alpha consensus, revenue is projected to increase to £15.33 billion ($19.35 billion) from the reported £13.52 billion the previous year.
Upward Trend in Adjusted Operating Profit
The company-compiled consensus anticipates an adjusted operating profit of £1.41 billion, a significant rise from the £652 million reported earlier.
Stock Performance and Outlook
With shares currently trading at around 326.40 pence, reflecting a year-to-date increase of 8.9%, investors will be keeping a close eye on the future guidance provided by Rolls-Royce.
Key Points to Monitor:
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Growth Forecast for Engine Flight Hours: Analyst Charles Armitage from Citi suggests that Rolls-Royce is likely to project strong growth in engine flight hours for 2024. This aviation metric plays a critical role in monitoring and maintaining the health and performance of aircraft engines. The expected range of 100% to 110% would enhance the company’s credibility in achieving its mid-term target of 120% to 130% compared to pre-pandemic levels.
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Progress Update on Transformation Plan: Analyst Ross Law from Morgan Stanley highlights the importance of Rolls-Royce updating stakeholders on the advancements made in its transformation plan, which includes asset disposals and strategic initiatives.
Stay tuned for the latest updates on Rolls-Royce Holdings PLC as they pave the way forward in the aviation and engineering sectors.