Rolls-Royce Holdings PLC (LSE:RR.)’s full interim results release on Thursday follows an impressive surprise earnings update last week which saw profit and free cash flow guidance lifted.
After the hikes in guidance to £1.4bn and £1.0bn respectively, UBS analysts questioned the key reasons for better expectations, noting “the underlying drivers of the outperformance,” will likely be in focus.
Civil aerospace will be under the market’s watchful eye, the bank said, with no material beat on expected engine flying hours marking a concern.
Unchanged engine delivery and shop visit guidance as a result may also leave investors with questions, UBS said, though Shore Capital noted this could only mean an improvement in margins.
Analysts have also pointed to Thursday’s update as likely to provide more information on new boss Tufan Erginbilgic’s transformation plan, which began earlier this year.