Please ensure Javascript is enabled for purposes of website accessibility

Why Boingo Wireless, Inc. Stock Soared 40% Higher Today

By Anders Bylund – Aug 2, 2018 at 2:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The provider of large-scale wireless antenna systems crushed Wall Street's expectations in the second quarter.

What happened

Shares of Boingo Wireless (WIFI) are skyrocketing today, following the release of fantastic second-quarter results. The maker of distributed antenna systems and small cells for wireless network installations saw share prices soar as much as 40.5% higher before cooling down to a 39.7% gain as of 1:45 p.m. EDT.

So what

In the second quarter, Boingo's top-line revenues rose 22% year over year to $59.6 million. Analysts had been expecting approximately $56.5 million on this line of the income statement. Further down that document, adjusted earnings swung from a net loss of $0.20 per share to a profit of $0.05 per share. Your average analyst was still looking for red ink here.

A person in a suit using a smartphone overlaid on a city skyline and photos of wireless antenna towers.

Image source: Getty Images.

Now what

The company closed 15 new contracts with wireless carriers in the second quarter, up from seven in the year-ago period. With a backlog of 78 distributed antenna installations yet to perform, Boingo should deliver solid revenue growth for the foreseeable future.

The stock has now gained a market-beating 116% over the last 52 weeks and 233% in a three-year period. It's no surprise to see the stock chart pushing upward again when Boingo Wireless delivers rapid-growth results of this stellar caliber.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of Boingo Wireless. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.