Gogo Q2 Revenue Misses, Guides Full-Year Below Street on Biz-Aviation Weakness
GOGO sits 19% above its 52-week low of $3.02.
Summary
Gogo missed Q2 revenue estimates by ~3%, posting $222.8M vs. the $229.35M consensus, and swung to a $2M net loss from a profit a year ago. Business aviation service revenue declined, offset partially by a 40% surge in military/government revenue. Full-year guidance of $870M–$895M in revenue and $175M–$185M in adjusted EBITDA came in below Street expectations. The company expects Galileo and 5G product ramps to accelerate in the second half, but near-term weakness in biz-aviation demand is weighing on results. With shares already down sharply from their $9.50 median target, this print reinforces the demand headwinds.
At the time of this announcement, GOGO was trading at $3.59 on NASDAQ in the Technology sector, with a market capitalization of approximately $603.2M. The 52-week trading range was $3.02 to $16.18. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.