2023-07-26 07:57:56 ET
Rolls-Royce ( OTCPK:RYCEY ) ( OTCPK:RYCEF ) +19.2% in London trading after raising its profit forecast for the year following stronger than expected H1 results driven by its civil and defense units.
The U.K. aircraft engine manufacturer upped its full-year guidance for operating profit of £1.2B-£1.4B (~$1.6B-$1.8B) from its previous outlook estimate of £800M-£1B, and now sees underlying operating profit for the first six months at £660M-£680M, more than double market expectations of £328M.
The stock soared as much as 25% in London to its highest since March 2020, after already becoming the biggest gainer on the FTSE 100 Index so far this year.
The company said it expects its main civil aerospace business will return to an operating profit of ~£400M in H1 from a loss in the year-earlier period, and it anticipates a 38% increase in operating profit for the defense business, amid the war in Ukraine.
"Despite a challenging external environment, notably supply chain constraints, we are starting to see the early impact of our transformation in all our divisions," CEO Tufan Erginbilgic said.
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Rolls-Royce skyrockets in London after surprise profit forecast upgrade