Gogo Earnings: Here’s Why Shares are Up Now

Gogo Inc (NASDAQ:GOGO) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.93%.

Gogo Inc Earnings Cheat Sheet


Revenue: Decreased 0% to $79.44 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gogo Inc reported adjusted EPS loss of $0.23 per share. By that measure, the company beat the mean analyst estimate of $-0.37. It beat the average revenue estimate of $73.18 million.

Quoting Management: “We had a very strong second quarter with total revenue up 37 percent to $79.4 million driven by a 54 percent increase in service revenue demonstrating robust demand for our connectivity products and services. Our 3,666 ATG aircraft online included 312 ATG-4 aircraft on the CA side as we continued to deploy our next generation technology to increase network capacity,” said Gogo’s President and CEO, Michael Small. “During the second quarter, we completed our Initial Public Offering (IPO) and closed an add-on credit facility, resulting in $300 million in new funding. We believe we are now well capitalized to address the large international growth opportunity.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0 to a loss $0.26. For the current year, the average estimate has moved down from a loss of $0 to a loss of $1.19 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)