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Gogo Q2 Earnings Miss Street; Slashes Annual Revenue Outlook

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Gogo Inc. (GOGO), a provider of broadband connectivity services for the business aviation market, Wednesday reported net income of $839,000 or $0.01 per share for the second quarter, significantly lower than $89.85 million or $0.67 per share a year ago. Last year's earnings had benefited from a tax benefit of $63.8 million. Earnings missed analysts' view. The company also cut its full-year revenue outlook.

Additionally, net income in the latest quarter included $11 million of unrealized loss related to a fair market value adjustment to a convertible note investment.

On average, 5 analysts were expecting earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.

Operating income declined to $21.68 million from $34.05 million in the previous year.

Revenue for the quarter dropped to $102.06 million from $103.22 million a year ago. The consensus estimate was for $99.01 million.

Service revenue increased 4 percent year-on-year to $81.9 million, while equipment revenue of $20.1 million declined 17 percent.

Looking ahead, the company now expects full-year revenue in the range of $400 million - $410 million, down from the previous guidance of $410 million - $425 million. The Street is looking for revenue of $418.79 million.

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