Rolls Royce soars 17%, shares at highest level from March 2020 📈

Shares of the iconic engine builder used primarily in aviation Rolls-Royce (RR.UK) are gaining 17% today as the company conveyed that it expects first-half profit to be double the market consensus forecast.

• Rolls Royce also raised its full-year 2023 profit forecast to £1.2 billion-£1.4 billion, compared to the previously estimated £0.8-1 billion. Investors took a positive view of the company's implemented cost-cutting and business optimization program, which, according to the company, began to bear fruit faster than expected.
• Shares climbed to their highest level since March 2020. The market consensus now calls for an operating profit for 2023 of £934 million, but there is a good chance that this one will turn out much higher in view of the company's forecast update. The company conveyed that it expects operating profit for the first half of the year to be in the vicinity of £650 million versus £328 million expected.
• After the pandemic, the maker of engines for Airbus or Boeing reported a slowdown related to lower orders and aircraft flying hours by which profits from its repair and maintenance unit were much lower. After a £4 billion loss in 2020, the company laid off nearly 8,500 employees. Management indicated today that it is finally satisfied with the results, which herald higher profits and cash generation and reflect the company's greater productivity and efficiency.

Rolls Royce (RR.UK) shares have largely covered the covid fall March 2020 gap. Source: xStation5