Please ensure Javascript is enabled for purposes of website accessibility

Why Gogo Stock Jumped Monday

By Daniel Sparks – Apr 15, 2019 at 12:32PM

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 inflight entertainment specialist's preliminary first-quarter results highlight progress on profitability.

What happened

Shares of inflight internet company Gogo (GOGO) surged on Monday, rising as much as 20.4%. As of 11:54 a.m. EDT, the stock was up 15.4%.

The stock's gain comes after Gogo announced preliminary first-quarter results, which included adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ahead of management's expectations.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Gogo estimates its first-quarter revenue to be between $197 million and $200 million, down from $232 million in the year-ago quarter. The company's preliminary net loss is between $17 million and $20 million, an improvement from $27.4 million in the year-ago quarter. 

Adjusted EBITDA for the period is estimated to be between $35 million and $38 million, up significantly from $11.9 million in the year-ago quarter. 

"The combination of better than expected Commercial Aviation service revenue and lower than expected overall operating and satcom costs contributed to our much better than expected preliminary Adjusted EBITDA in the first quarter," said Gogo CEO Oakleigh Thorne in the company's first-quarter earnings release.

Now what

Thorne sounded confident about the company's operational progress, noting, "Our focus on cost management and operational execution continues to drive financial momentum."

Gogo is scheduled to announce its official first-quarter results before the market opens on Thursday, May 9.

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.

Stocks Mentioned

Gogo Stock Quote
Gogo
GOGO
$15.87 (%)

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

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