Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Rolls-Royce share price soars after upbeat 2020 outlook despite coronavirus threat

Shares in the engineering group continue to rise this week after it delivered a promising 2020 outlook despite the coronavirus threat and ongoing issues with its Trent 1000 engine eating into profits.

Rolls-Royce has seen its share price climb 9% higher after delivering a strong set of full-year (FY) results last week and a positive outlook for 2020 despite the coronavirus threat.

The engineering group increased its operating profit by 25% to £808 million, driven primarily by its civil aerospace division, which delivered record engine deliveries in 2019. Meanwhile, revenues rose 7% to £15.5 billion and the free cash flow increased by 53% to £873 million.

Despite delivering a strong performance in its FY results, Rolls-Royce reported a loss of £852 million due to ongoing issues with its Trent 1000 engine.

Looking to trade Rolls-Royce and other UK stocks? Open a live or demo account with IG today.

‘After a challenging H1, we had a good end to 2019, delivering 25% growth in FY underlying operating profit and an encouraging level of free cash flow,’ Rolls-Royce chief executive officer (CEO) Warren East said. ‘Our restructuring efforts gained momentum, with run-rate cost savings of £269 million.’

‘We made further progress on the Trent 1000; cash costs are in line with guidance,’ he added. ‘We remain on target to reduce aircraft on ground to single digits by the end of Q2 2020.’

Earnings per share remained flat YoY at 11.7p.

Rolls-Royce is trading at £6.40 a share as of 12:55 (GMT) on Tuesday.

You can go long or short Rolls-Royce with IG using derivatives like CFDs and spread bets.

Rolls-Royce hopes to navigate COVID-19 outbreak

Rolls-Royce hopes to carry the momentum it gained in 2019 forward into 2020, with the engineering group looking to improve OE losses, grow aftermarket cash flow and control indirect costs, while investing in research and development to drive future growth.

However, the company admitted that there are macro risks to navigate this year, namely the outbreak of COVID-19, though Rolls-Royce’s 2020 guidance remains unchanged despite its concerns.

Core operating profit growth is expected to be around 15%, with at least £1 billion of free cash flow (FCF) in 2020, as the company looks to exceed £1 per share of FCF – or at least £1.9 billion – in the mid-term.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.