As earnings season heats up, Gogo Inc (NASDAQ: GOGO) is exciting investors with a strong earnings report of its own. Not only did the company beat expectations on both the top and bottom line, it offered up revenue guidance that proved to be a source of excitement for investors. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from GOGO stock as a result; and
- what we’ll be watching for ahead.
GOGO Blows Away Earnings Expectations
As mentioned above, Gogo is having a strong start to the trading session today after reporting its earnings for the third quarter. During the quarter, the company smashed through expectations and set the stage for strong growth ahead. Here’s what we saw from the report:
- Net Loss – In terms of net loss, GOGO said that it lost $37.7 million in the third quarter. That works out to a loss of $0.47 per share. However, that figure came in well ahead of expectations. During the quarter, analysts expected that the company would generate a loss of $0.77 per share.
- Revenue – Revenue also proved to be a big hit for the company. During the third quarter, the company generated revenue in the amount of $217.3 million. Analysts expected that the company would only generate revenue in the amount of $212.9 million.
- Guidance – Finally, the company generated relatively strong guidance as icing on the cake of this positive report. For the full year, the company expects to generate revenue in the range between $865 million and $935 million.
In a statement, Oakleigh Thorne, President and CEO at GOGO, had the following to offer:
Gogo’s third quarter results demonstrated solid financial and operational performance… In our CA business, we have installed nearly 1,000 2Ku aircraft and strong 2Ku performance is driving customer satisfaction and higher take rates. In our BA segment, strong AVANCE equipment sales are setting the stage for continued service revenue growth.
What We’re Seeing From The Stock
Earnings season is a fun one because it is known to be the source of opportunity. After all, earnings reports are the most updated financial data that investors have to go off of. So, a strong earnings report showing growth is bound to excite investors and push a stock for the top. That’s exactly what we’re seeing from Gogo today. With earnings and revenue well ahead of expectations, investors can’t seem to get enough. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:00), GOGO is trading at $6.25 per share after a gain of $0.46 per share or 7.94% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GOGO. In particular, we’re interested in following the continued growth of the company as it seems to be surprising investors as we speak. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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