Investor worries go beyond the earnings miss Rolls-Royce''s share has been under significant pressure after a release that missed consensus earnings forecast but provided a significant beat on cash flow. Beyond earnings, we think that the share price reaction probably crystallized two issues prompting investors to wait on the sidelines: management transition, and persistent short-term volume uncertainty. One-off disclosures, and impacts on perception of accounting risk at times of CEO change A year after a CFO change, and six months ahead of CEO replacement, Rolls-Royce disclosed two one-off tailwinds that supported its H1 21 results: a GBP270m FX revaluation credit in Civil Aero (not mentioned last year, partly reversing in H2 21), and a GBP45m one-off spare parts sales boost in Defence (mentioned but not quantified last year). Any top management change can involve new assumptions about future costs, thus resetting expectations. Rolls-Royce is known for its complex business model and accounting, which implies some management judgement calls. The recent incremental disclosure has thus acted as a signal that the CEO change could involve some risk. A trading momentum issue Consensus EBIT for 2022 (based on Visible Alpha data) stands at GBP517m, vs a guidance implying c.425-430m. Rolls'' target remains based on an acceleration of engine shop visits (milestone for aftermarket revenue recognition) that can look a bit challenging: Rolls recorded 477 shop visits in H1 and targets a 1,100-1,200 range FY. The 40% increase in shop visits in H2 vs H1, supported by flight hours recovery may well be achievable, but it is not fully derisked; we see significant risk of consensus cuts post this release. Underperform stance reiterated Progressive air travel recovery, FX support and relatively attractive valuation drive compelling equity stories in civil aerospace. Within the segment, we continue to believe that Rolls-Royce, despite a rather attractive mid-term...