Rolls-Royce Holdings (GB:RR) and Anglo American (GB:AAL) will report their fourth-quarter and full-year results for 2022 on February 23.
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Analysts remain positive on the “recovery play” of Rolls-Royce Holdings and see a big opportunity for patient investors. Higher debt levels remain a concern for investors and analysts, and they await any further updates on how the company will drive better cost efficiency.
Analysts predict lower earnings and dividends for Anglo American in the full-year results as demand for China remains weak and costs remain high.
The TipRanks Earnings Calendar is a useful tool for tracking your investments as well as researching new options. The earnings report answers all the important questions on investors’ minds and also guides on the future prospects. This tool provides crisp and updated information on the company’s earnings in different markets.
Let’s have a look at the details.
Rolls-Royce Holdings PLC
Rolls-Royce Holdings is a manufacturing company catering to the aerospace and defense sectors.
The company’s stock has witnessed a huge growth of 37% in the last six months, riding on the recovery in the airline sector and the opening of Chinese borders. The company generates around 40% of its revenues from China and remains optimistic about its growth.
Rolls-Royce is all set to announce its 2022 annual results on February 23, before trading hours. The consensus EPS forecast for the fourth quarter is negative 0.01p. For the full year, EPS is expected at 0.62p, as compared to the underlying EPS of 0.11p in 2021. The expected revenue for 2022 is £11.6 billion, up from £10.9 billion in the previous year. The quarterly sales are expected to be £6.24 billion.
In its latest trading update, the company announced its large engine flying hours are increasing rapidly and are already at 65% of pre-pandemic levels. The company also renewed defense contracts worth $1.8 billion for the next five years.
However, analysts expect these developments to impact the company’s results only starting in 2023 and beyond. For 2022, the company expects low-to-mid single-digit revenue growth, based on improvements in the civil aerospace business in the second half. The operating profit margin is expected to be 3.8%, similar to 2021 levels.
Is Rolls Royce a Good Stock to Buy?
The RR stock has a Hold rating on TipRanks, based on four Buy, five Hold, and two Sell recommendations.
The target price is 115.58p, which represents a change of 5% from the current price level.
Anglo American PLC
Anglo American is a UK-based mining company with operations in around 15 locations worldwide. The company deals in a diverse range of products such as platinum, diamonds, copper, nickel, iron ore, etc.
The mining giant will release its full-year results for 2022 tomorrow, February 23, before the UK market opens. The company will also announce its Q4 earnings; the forecasted EPS is around 1.48p. The EPS for the third quarter was 2.59p per share.
According to TipRanks, the Q4 sales forecast is around £13.7 billion, slightly down from the previous quarter’s sales of £13.91 billion. Overall, analysts expect lower earnings and dividends in 2022, mainly due to higher energy and labor costs and weak demand from China.
This is along the same lines as another mining company, Rio Tinto (GB:0KWZ), which has reported its 2022 earnings today, with a 38% decline in profits and lower dividends.
What is the Price Target for Anglo American?
Ahead of its earnings, the stock has been trading down by 4.1% in the last five days. In terms of share price growth, the stock has mixed views with an average Hold rating on TipRanks.
The stock has a total of 13 recommendations, including six Hold, five Buy, and two Sell ratings.
The AAL target price is 3,425.9p, which is 11% higher than the current price level.
Conclusion
The earnings season is already more than halfway through. It has certainly caused some market volatility, but overall, it has been a good session for UK companies. Even though the next year’s outlook in the results remains cautious, the opportunity to invest is huge.
Both RR and AAL are expected to report decent numbers in their results tomorrow, but analysts are hopeful for a longer-term potential. Currently, both stocks have Hold ratings from the majority of analysts.
