NEW YORK (TheStreet) -- Shares of Gogo (GOGO) spiked 9.07% to $18.15 in afternoon trading Monday after Dow Jones reported that AT&T (T) had scrapped its plan for an in-flight Wi-Fi service that would compete with Gogo's.
Gogo stock had been down since the market open after its third-quarter earnings report that missed analysts' expectations. The company reported a loss of 29 cents a share for the quarter, 3 cents worse than the Capital IQ Consensus Estimate of a loss of 26 cents a share. Revenue rose 21.8% year-over-year to $104 million, which edged the consensus estimate of $103.73 million.
Gogo also reaffirmed its full-year 2014 revenue guidance in the range of $400 million to $420 million, while analysts expect $407 million. The company expects full-year adjusted EBITDA at the low end of the range of $8 million to $18 million. Gogo also forecast cash capital expenditures of $100 million to $120 million, down $5 million from its previous guidance.
Separately, TheStreet Ratings team rates GOGO INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOGO INC (GOGO) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk."
- You can view the full analysis from the report here: GOGO Ratings Report