Gogo (NASDAQ:GOGO) shares ended the last trading session 7.9% higher at $13.65. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14% gain over the past four weeks.
GOGO’s rally is driven by optimism over the deployment of best-in-class network and broadband connectivity products and services in response to the rising demand for data in business aircraft. Recently, the company unveiled Gogo Biz 4G Limitless, the first unlimited streaming and data Wi-Fi plan for business aviation customers. Moreover, the sale of its Commercial Aviation business to a subsidiary of Intelsat acted as a major tailwind. The divestment is expected to boost its financial position by reducing Gogo’s net debt while tapping new growth opportunities, including Gogo 5G, to support its growth trajectory in the long run. All these factors make Gogo well positioned to maintain its leadership in the business aviation market.
Price and Consensus
This in-flight internet provider is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +96.2%. Revenues are expected to be $75.31 million, down 22.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Gogo, the consensus EPS estimate for the quarter has been revised 8.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GOGO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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