Shares in Rolls-Royce Holdings (LON:RR) have surged higher in today’s session, as the blue-chip engine maker said that it expects its full-year cash flow and profits to come in at the upper end of its guidance. The news marks a boost for the company recently warned of fresh problems affecting around 200 of its engines.
As of 10:18 GMT, Rolls-Royce’s share price had added 2.72 percent to stand at 802.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.06 percent higher at 6,879.00 points. The group’s shares have lost about 2.5 percent of their value over the past year, as compared with about an 8.3-percent dip in the Footsie.
Rolls-Royce updates on performance
Rolls-Royce announced in a statement today that it is expecting both its group and core profit, and cash flow for 2018 to be in the upper half of its full-year guidance range. The company explained that the strong growth it had reported in its Civil Aerospace and Power Systems divisions for the first half had continued into the second half.
Rolls-Royce further updated investors on its Brexit contingency plans, noting that it was working with the European Aviation Safety Agency to transfer design approval for large aero engines to Germany, where the company already carries out this process for business jets.
Analysts on British engine maker
The 16 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 977.50p on the shares, with a high estimate of 1,255.00p and a low estimate of 675.00p. As of December 8, the consensus forecast amongst 19 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.