What happened

Shares of Gogo Inc. (GOGO -1.30%) soared on Tuesday, rising as much as 35.1%. As of 2:23 p.m. EST, the stock was up 25.4%.

The stock's sharp move follows Gogo's third-quarter earnings release, which featured better-than-expected financial results and an upward revision to management's guidance for adjusted earnings before taxes, depreciation, and amortization (EBITDA).

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Gogo reported third-quarter revenue of $217.3 million, up 26% year over year. This easily beat the consensus analyst estimate for revenue of $211 million. Gogo's loss per share for the quarter was $0.47, narrower than a loss of $0.57 in the year-ago quarter and better than the consensus analyst estimate for a loss of $0.72 per share. 

Management notably said its adjusted EBITDA of $21.1 million during the quarter was higher than it was expecting. This strong performance was "due largely to strong [business aviation] performance, higher [commercial aviation] service revenue, and lower operating expenses," said CFO Barry Rowan in the company's third-quarter earnings release.

Now what

Given its strong momentum, Gogo now expects its full-year 2018 adjusted EBITDA to be between $45 million and $60 million. This is up significantly from management's previous outlook for adjusted EBITDA between $35 million and $45 million.

In addition, Rowan said, "Gogo is well positioned for strong Adjusted EBITDA growth in 2019."