Rolls-Royce Holdings PLC (LSE:RR.)’s update will shed light on the company’s engine flying times, which could outdo expectations this year according to UBS.
Though both UBS and Barclays anticipate a fairly low-key trading announcement, the former called in Rolls-Royce engine flying times at up to 83% of 2019 levels for the first quarter, equalling 2.8mln hours.
This could place Rolls-Royce on course to outdo full-year expectations of 13mln hours, UBS noted, marking good news since it is paid based on flight times.
Rolls-Royce is largely wrapped into long-haul flight though, making the recovery of China a key factor in its performance.
Barclays anticipated deliveries and flying hours will be as expected, with Rolls-Royce more likely to provide some further detail on supply chain issues and the post-Covid “inventory balance unwind”.
Both suggested an unchanged full-year outlook from Rolls-Royce, which predicts operating profit will sit between £0.8bn and £1bn come the end of 2023, up from £0.7bn last year.
The FTSE-100 aerospace firm anticipates free cash flow in the region of £0.6bn to £0.8bn, compared to 2022’s £0.5bn, meanwhile.
Barclays held a 'neutral' rating for Rolls-Royce ahead of the update, while UBS tipped it a 'buy'.