I am warming up to GOGO again. We played them from down ($10) here successfully at one point and now they are beaten up again but earnings were very nice and they have good contracts going forward:
Gogo beats Q1 expectations as revenues climb 23%
- Gogo (NASDAQ:GOGO) was up as much as 2.7% in early going but has sacrificed gains, now -1.6% after its Q1 earnings report beat expectations on top and bottom lines following some recent customer wins with Delta and International Airlines Group.
- Segment profits in North American commercial aviation and business aviation combined rose 29% to $34M. EBITDA of $14.5M was up 76% and beat an expected $13.6M.
- Service revenue was $118.7M (up 24.4%); and equipment revenue was $23M (up 14.5%). Service revenue by segment: Commercial Aviation-North America, $83.4M (up 15.6%); Commercial Aviation-Rest of World, $4.6M (up 226%); Business Aviation, $30.7M (up 40.8%).
- In operations, aircraft equivalents during the period rose to 2,512 from a year-ago 2,155. Average monthly service revenue per aircraft equivalent fell to $11,137 from $11,163.
- Average revenue per session rose to $13.05 from $11.73, and connectivity take rate dipped to 6.5% from a year-ago 7.2%.
- The company affirmed full-year guidance for total revenue of $575M-$595M and EBITDA of $55M-$65M, both in line with expectations.
- Press Release
They are only an $850M company down here ($9.91) but very easy to justify once they turn a profit and they've got some new deals locked in on the new (faster) system:
PR Newswire
CHICAGO, May 6, 2016 /PRNewswire/ -- Gogo Inc. (Nasdaq: GOGO (GLGDF)), the global leader in providing broadband connectivity solutions and wireless entertainment to the aviation industry, today announced its financial results for the quarter ended March 31, 2016.
First Quarter 2016 Consolidated Financial Results
- Revenue increased to $141.7 million, up 23% from $115.5 million in Q1 2015.
