Rolls-Royce earnings: here’s what will help me decide to buy more shares

first_img Enter Your Email Address Joe Clark | Wednesday, 10th March, 2021 | More on: RR Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Get the full details on this £5 stock now – while your report is free. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Our 6 ‘Best Buys Now’ Shares Rolls-Royce earnings: here’s what will help me decide to buy more shares Joseph Clark holds shares in Rolls-Royce. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Image source: Getty Images. FREE REPORT: Why this £5 stock could be set to surge See all posts by Joe Clark Simply click below to discover how you can take advantage of this. FTSE 100 stock Rolls-Royce (LSE:RR) will release its earnings report on Thursday 11th March at 9am. It is well expected that the company will report its biggest annual loss in history and go into depth about the detrimental impact the Covid-19 pandemic has had on the business. Nonetheless, I think there might be light at the end of the tunnel for Rolls-Royce shares.Here are the main reasons why I am re-entering Rolls-Royce albeit tentatively, as I think there is a chance that we see a positive rise of the share price after earnings.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Rolls-Royce is expected to report its biggest loss everThe market is already expecting the company to have its biggest ever loss on record so that isn’t likely to spook the share price if it is indeed reported. In fact, International Airlines Group recently reported a loss of £7.5 billion and its share price rose 3.5%; I am hoping that we might see something like that for Rolls-Royce’s shares.Reasons the stock could riseI am hoping that the management comes out speaking upbeat on its recovery, especially in terms of its aerospace division. This division manufactures and services engines for the airline industry and makes up 50% of the company’s total earnings. Therefore, with the vaccination roll-out going better than expected in the UK and improving globally, this is positive for Rolls-Royce’s main revenue stream especially as more airlines are now travelling than they did in the fourth quarter. Additionally, I hope we hear more from management about this and that they provide upbeat guidance for the rest of the year, especially with foreign holidays from the UK set to be allowed from 17th May.Reasons Rolls-Royce shares could fallA key metric to focus on will be its liquidity position (cash). During the pandemic, the management team reacted quickly and raised money from a rights issue. They also took measures to cut-costs to make the business leaner, which I think has only made the company a more attractive proposition if it can survive this pandemic. However, if we were to hear that Rolls-Royce may need to do another round of financing, or if it raises concerns about its cash position being able to survive a longer-than-expected recovery, this could send the share price falling.Why I am buyingNevertheless, although the shares have recovered somewhat, they are still significantly down from Rolls-Royce’s pre-pandemic levels of over 600p. That’s why I think now, before its FY earnings, is a great chance to get into this stock. Therefore, I am buying more shares in this global brand in the hope of a boost after earnings, but I will be holding a little bit of money back in case a ‘buy the dip’ opportunity presents itself instead. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.last_img

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