Shares of in-flight internet provider Gogo (Nasdaq:GOGO) climbed Wednesday morning after flying past Wall Street’s profit and revenue estimates for the second quarter.
The Chicago-based company reported a loss of US$0.47 per share on revenue of US$227.46mln. This was a far better showing than Wall Street’s consensus projection of a loss of US$0.75 on revenue of US$207.64mln.
Optimistic about the company's growth projections, investors pushed up Gogo's shares about 7% right after the open to US$4.10, after adding as much as 14% in the premarket.
A company on the move
The company said its Gogo 2Ku inflight systems are now in place on 785 aircraft run by 12 global airlines and that it added 139 Ku systems to aircraft in the quarter.
Gogo’s revenue from its business aviation group rose 28% from the year-ago period to US$74.2mln while its revenue from its North American commercial aviation company jumped 19% to US$119.7mln.
“Our business aviation segment achieved its highest-ever quarterly revenue and EBITDA and we believe this segment is well-positioned for continued growth,” said CEO Oakleigh Thorne in a statement.
Looking at its international growth, Gogo’s revenue from its commercial aviation group for the rest of the world increased to US$33.6mln, up from US$14.1mln in the year-ago quarter.
Gogo recently launched its service on Air Canada’s international aircraft fleets as well as Iberia Airlines and Alaska Airlines.
Gogo expects full-year revenue to fall in the range of US$865mln to US$935mln.
Based in Chicago, Gogo provides broadband connectivity and related services for aircraft.
Contact Ellen Kelleher at [email protected]