Gogo (GOGO) Stock: Gaining On Year End Results

Gogo Inc GOGO Stock News

Gogo Inc (NASDAQ: GOGO) is having a very strong day in the market today after the company announced strong year-end de-icing results. Of course, the positive results excited investors who are pushing the stock on a run upward. Today, we’ll talk about:

  • The year-end results;
  • waht we’re seeing from GOGO stock as a result; and
  • what we’ll be watching for ahead.

GOGO Announces Year-End De-Icing Results

As mentioned above, Gogo is having a strong day in the market today after announcing year-end de-icing results. In a press release issued early this morning, the company said that modifications to protect against de-icing fluid contamination on its 2Ku North American aircraft have achieved positive results.

The company said that as a result of the success of its modifications, it did not incur some of the forecasted costs associated with de-icing efforts that were expected to take place in 2018. As such, the company is raising its adjusted EBITDA guidance to the high end of the previously announced range. As it stands now, adjusted EBITDA is expected to come in at approximately $60 million for the 2018 year.

The company said that as of December 31, 2018, its 2Ku system had experienced no incidents of system degredation on aircraft with its recent de-icing modifications. The company also said that it estimates that aircraft with de-icing modifications flew more than 5,000 flights that had been de-iced.

So far, the GOGO de-icing modifications have been installed on more than 675 aircraft. That represents nearly 97% of the company’s installed North American fleet.

In the release, the company said that while the majority of global de-icing activities occur in North America, the company will modify existing 2Ku installations on international aircraft as part of each airline’s maintenance program. Also, all newly equiped 2Ku aircraft around the world will include the new modifications.

In a statement, John Wade, Presdient of the Commercial Aviation division at GOGO, had the following to offer:

On December 11, 2018, we announced zero incidents of 2Ku degradation on aircraft installed with Gogo’s recent de-icing modifications and we are pleased to announce that this success extended through the end of 2018.

What We’re Seeing From The StockĀ 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Gogo, the news proved to be overwhelmingly positive. After all, the success of its de-icing modifications will contribute to improved adjusted EBITDA while reducing cost. So, it’s not surprising that excited investors are pushing the stock on a run for the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:57), GOGO is trading at $3.56 per share after a gain of $0.47 per share or 15.21% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the iWatch Markets team will continue to keep a close eye on GOGO. In particular, we’re interested in following the story surrounding the company’s continued work to install its modifications across its entire fleet as well as the continued improvement in Adjusted EBITDA that these modifications cause. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!

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