Earnings Outlook For Gogo

Gogo GOGO is set to give its latest quarterly earnings report on Tuesday, 2024-11-05. Here's what investors need to know before the announcement.

Analysts estimate that Gogo will report an earnings per share (EPS) of $0.05.

Anticipation surrounds Gogo's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.02, leading to a 0.39% drop in the share price the following trading session.

Here's a look at Gogo's past performance and the resulting price change:

Gogo Share Price Analysis

Shares of Gogo were trading at $6.66 as of November 01. Over the last 52-week period, shares are down 35.36%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analysts' Perspectives on Gogo

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Gogo.

With 3 analyst ratings, Gogo has a consensus rating of Neutral. The average one-year price target is $12.17, indicating a potential 82.73% upside.

Understanding Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of and Spok Holdings, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• For Spok Holdings, analysts project an Neutral trajectory, with an average 1-year price target of $15.0, indicating a potential 125.23% upside.

Analysis Summary for Peers

In the peer analysis summary, key metrics for and Spok Holdings are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Gogo's revenue growth is lower than its peers. Its gross profit is higher than its peers. Gogo's return on equity is lower than its peers. Overall, Gogo ranks in the middle compared to its peers in terms of these financial metrics.

Unveiling the Story Behind Gogo

Gogo Inc is a broadband connectivity service for the business aviation market. It provides a customizable suite of smart cabin systems for integrated connectivity, inflight entertainment, and voice solutions. Its business segment includes Business Aviation. It generates two types of revenue: service revenue consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and in-flight entertainment services. and equipment revenue consists of proceeds from the sale of ATG and narrowband satellite connectivity equipment and is recognized when control of the equipment is transferred to OEMs and dealers, which generally occurs when the equipment is shipped.

Breaking Down Gogo's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Challenges: Gogo's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -1.13%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Gogo's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.82%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Gogo's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.47% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Gogo's ROA stands out, surpassing industry averages. With an impressive ROA of 0.1%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 12.93, Gogo faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Gogo visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.