Company in the news: Rolls-Royce

Rolls-Royce (LSE: RR) fell foul of the City expectations machine last week because, despite posting very good financial results for 2013 with profits growth of 23%, it has said that profits won’t grow at all in 2014. The share price has been hammered.

We tipped Rolls-Royce as a long-term buy in MoneyWeek a few weeks ago. While the timing of this tip now looks unfortunate, we still believe that the long-term prospects for its shares remain good.

Profits will be held back in 2014 due to governments cutting back on defence spending. Consequently, Rolls-Royce expects [...]

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