Gogo (NASDAQ:GOGO) Issues Quarterly Earnings Results

Gogo (NASDAQ:GOGO) posted its quarterly earnings results on Thursday. The technology company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.06 by ($0.03), Zacks reports. Gogo had a positive return on equity of 22.55% and a negative net margin of 0.09%.The business had revenue of $222.81 million during the quarter, compared to the consensus estimate of $229.35 million. During the same period in the prior year, the firm earned $0.09 earnings per share. The business’s revenue for the quarter was down 1.4% on a year-over-year basis.

Here are the key takeaways from Gogo’s conference call:

• Galileo adoption accelerated: Gogo shipped 108 Galileo units in Q2, bringing cumulative shipments to 518, while aircraft online rose 66% sequentially to 184. New fleet wins, including Airshare, and additional STC approvals expanded the platform’s addressable market.
• Military and government revenue reached another record: Service revenue increased 40% year over year and 20% sequentially, driven by higher utilization amid geopolitical tensions and longer-term modernization demand. Gogo is also exploring UAV connectivity, which could significantly broaden the opportunity.
• Legacy ATG attrition continued: Total ATG aircraft online fell 6% sequentially to 5,731, with management expecting roughly 1,200 total ATG units online by year-end, including 5G. Some declines reflect migrations to Galileo and 5G, but a portion of the remaining classic customer base is expected to deactivate.
• Full-year guidance was reduced: Revenue guidance is now $870 million to $895 million and adjusted EBITDA guidance is $175 million to $185 million, reflecting delayed Galileo and 5G equipment shipments, product mix, and higher litigation costs. Free cash flow guidance was also lowered to $65 million to $85 million.
• Debt reduction remains the top capital allocation priority: Gogo paid down $21.1 million of term-loan principal and ended Q2 with $63.1 million in cash, but net leverage rose to 3.8 times after funding a $40 million Satcom Direct earn-out payment.

Gogo Trading Down 0.3%

Shares of GOGO stock traded down $0.01 during mid-day trading on Friday, reaching $3.63. The stock had a trading volume of 2,386,536 shares, compared to its average volume of 1,476,514. The firm has a market capitalization of $490.92 million, a PE ratio of 363.00 and a beta of 1.13. The stock’s 50-day moving average price is $3.68 and its two-hundred day moving average price is $4.16. The company has a current ratio of 1.73, a quick ratio of 1.27 and a debt-to-equity ratio of 6.74. Gogo has a 52-week low of $3.02 and a 52-week high of $13.13.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on GOGO shares. Weiss Ratings raised Gogo from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, August 3rd. Wall Street Zen cut Gogo from a “hold” rating to a “sell” rating in a research note on Saturday. Roth Capital reiterated a “buy” rating on shares of Gogo in a research report on Friday. Finally, Morgan Stanley dropped their price objective on Gogo from $8.00 to $7.00 and set an “equal weight” rating for the company in a research note on Thursday, May 21st. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Gogo presently has an average rating of “Hold” and an average target price of $8.50.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. The Manufacturers Life Insurance Company boosted its holdings in shares of Gogo by 6.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 25,934 shares of the technology company’s stock valued at $381,000 after acquiring an additional 1,597 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Gogo by 6.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,205 shares of the technology company’s stock valued at $338,000 after purchasing an additional 2,342 shares during the last quarter. Quarry LP raised its holdings in shares of Gogo by 86.1% during the third quarter. Quarry LP now owns 7,171 shares of the technology company’s stock valued at $62,000 after purchasing an additional 3,318 shares during the last quarter. Swiss National Bank lifted its position in Gogo by 2.8% during the fourth quarter. Swiss National Bank now owns 145,100 shares of the technology company’s stock valued at $676,000 after purchasing an additional 4,000 shares during the period. Finally, Tower Research Capital LLC TRC lifted its position in Gogo by 300.1% during the second quarter. Tower Research Capital LLC TRC now owns 8,163 shares of the technology company’s stock valued at $120,000 after purchasing an additional 6,123 shares during the period. Hedge funds and other institutional investors own 69.60% of the company’s stock.

Gogo Company Profile

Gogo Inc is a leading provider of in-flight connectivity and entertainment solutions for commercial and business aviation. The company specializes in delivering broadband internet, voice and text services, and streaming entertainment to passengers at 35,000 feet. Gogo’s offerings include both air-to-ground (ATG) networks and satellite-based connectivity, enabling reliable in-flight internet access across a range of aircraft types.

Gogo’s ATG network spans the United States and portions of Canada, using ground towers to transmit data signals directly to equipped aircraft.