What happened

Shares of Gogo Inc. (NASDAQ:GOGO) 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

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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."

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.