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TheStreet Open House

Gogo In-Flight Internet Soars on Earnings Beat: StockTwits

Stocks in this article: GOGO AAL DAL JBLU LUV RJET UAL

NEW YORK (TheStreet) -- In-flight Internet provider Gogo (GOGO - Get Report) soared Monday morning on the wings of a Wall Street beat. And StockTwits' investors believe shares will continue to fly as the company tops competitors.

$GOGO great qtr and a great cc. Run shorty run ? traderelite (@traderelite) May. 12 at 09:08 AM

Sentiment on the Gogo is 85% bullish, according to StockTwits analytics. The stock climbed 8% Monday before the open, during the company's first quarter earnings conference call. It was the top trending ticker on StockTwits.com. At 11:30 a.m., the stock was at $12.98, up 8.8% for the day.

$GOGO Time to buy more this is next Netflix in few years. ? Satya (@Samlal) May. 12 at 08:52 AM

Gogo reported a smaller-than-expected earnings-per-share loss of 20 cents before the bell Monday on $95.7 million in revenue. The results surpassed analyst consensus estimates for an EPS loss of 25 cents on $94.58 million in sales. The company maintained guidance of between $400 million and $422 million in total revenue for the year. It expects adjusted EBITDA of between $8 million and $18 million.

But some investors were disappointed that Gogo didn't announce a new airline deal during the conference call.

$GOGO Results r mildly better than estimates - guidance leaves me wanting more - was hoping for announcement of new partnership ? Omar (@TheStacks) May. 12 at 08:59 AM

Gogo management is working fast to ink deals with new airlines and increase its Internet speed and coverage before competitors do. Recently, Gogo inked a deal with Air Canada to supply Internet for its North American fleet. Gogo will also test its new 2Ku band satellite technology on Air Canada flights, which promises to deliver up to 100 megabits per second (mpbs for short). Gogo management says that speed will top everyone else in the industry.

"We expect to see significant capacity increases with the introduction of our GTO and 2Ku airborne antennas, both of which are capable of delivering industry leading speeds of 70mpbs to the aircraft initially, and up to 100 mbps when spot beam Ku satellites are launched," said Gogo CEO Michael Small in a press release.

About 38% of domestic U.S. flights offer in-flight Wi-Fi, according to a July report by RouteHappy, a flight ratings and analytics site. Delta (DAL), Southwest (LUV) and U.S. Airways (AAL) offer Wi-Fi on the most flights -- though Virgin America and AirTran have their entire fleets outfitted for Wi-Fi.

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