Why Gogo Stock Jumped Monday

What happened

Shares of inflight internet company Gogo (NASDAQ: 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.

10 stocks we like better than Gogo
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Gogo wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.