Shares of aviation connectivity and wireless-entertainment specialist Gogo (NASDAQ:GOGO) jumped on Monday, rising as much as 17.7%. As of 11:21 a.m. EDT today, however, the stock had settled to a 3.2% gain.
The stock's gain was likely primarily fueled by Gogo's second-quarter earnings release, which included revenue that was significantly higher than analysts' consensus forecast for the metric.
The coronavirus weighed heavily on Gogo's second-quarter results as demand for both domestic and international travel suffered during the period. The company's total revenue fell 55% year over year to $96.6 million, though this hit wasn't as bad as expected. On average, analysts were modeling for $90.3 million of second-quarter revenue.
Profitability unsurprisingly suffered during the period. Gogo's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were negative $15.9 million, down from positive $38 million in the year-ago period.
Due to continued uncertainty surrounding COVID-19's impact on air travel, management refrained from providing guidance. But CEO Oakleigh Thorne said the company was "encouraged by the strong recovery in business aviation as well as the beginnings of a recovery in global commercial aviation which has continued into August."