Rolls-Roys (LON: RR) share price has moved sideways in the past few weeks as investors wait for the upcoming financial results. The stock was trading at 150.35p, where it has been in the past few weeks. It remains ~140% above the lowest level in September last year, making it a top-performing FTSE 100 index.
Rolls-Royce Holdings earnings ahead
Rolls-Royce stock price has been in a consolidation phase in the past few weeks as focus now shifts to the upcoming earnings and annual general meeting (AGM). The company will publish its trading statement on May 11th of this year. It will also hold its AGM on the same day.
These events tend to be major catalysts for stocks since they provide investors with more information about the company’s performance. Analysts believe that the company did well in the first quarter of the year.
These results will come a few months after the company delivered its full-year results. The results showed that the company’s revenue jumped to £12.6 billion in 2022. Its operating profit jumped to £652 million while its profit before tax soared to £206 million.
Analysts expect that the company’s revenue will jump to £13.9 billion this year and £15 billion in 2024. Its profits are also expected to jump to £915 million this year while its operating margin will rise to 65%.
The upcoming trading statement and AGM will also give the CEO a chance to talk about the progress he is making to turn around the company. In his past report, he said that he will focus on improving costs while focusing on the most profitable companies. This means that he will end some of the unprofitable ventures started by his predecessor.
Rolls-Royce results will show that the company’s civil aviation is doing well as travel rebounded. This is evidenced by the strong results by key airlines like Delta and United Airlines.
Rolls-Royce share price analysis
RR chart by TradingView
RR share price has been in a strong bullish trend since September. Recently, however, the shares have stalled as it has remained around 150p. As I wrote in this article, this price is at the upper side of the cup and handle pattern that has been forming. In price action analysis, this pattern is usually a bullish sign.
Therefore, there is a likelihood that the Rolls-Royce stock price will have a bullish breakout after the upcoming earnings. If this happens, the shares will likely soar to the key resistance point at 200p in the next few months. For this to happen, the stock needs to move above the year-to-date high of 160.70p.
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