GoGo Shares Soar on 3Q Results

(AP) -

NEWS: Gogo Inc., which provides in-flight internet and wireless service, reported a smaller loss in its third quarter and upped its revenue guidance for the year. On Monday, Gogo shares jumped to their highest point since the company went public in June.

DETAILS: There were 2,011 commercial aircraft using Gogo’s technology as of Sept. 30, up 24 percent from a year ago. On business aircraft, usage rose 41 percent from a year ago; it’s now on 1,847 planes.

Everything seems to be going right for Gogo. The Federal Aviation Administration ruled two weeks ago that passengers can use electronic devices on board, even while the plane is taking off and landing.

Gogo is used by several carriers, including American, Delta, United and US Airways.

NUMBERS: The company reported a loss of $18.7 million, or 22 cents per share, in the quarter ending Sept. 30, compared with a loss of $29 million, or $4.27 per share, in the same quarter a year ago.

Revenue jumped 48 percent to $85.4 million in the third quarter, from $58 million in the same quarter a year ago.

Analysts expected a loss of 30 cents per share and revenue of $76.8 million, according to FactSet.

FUTURE: For the full year, the company expects revenue of $325 million, up from its previous forecast of $315 million. Analysts expected revenue of $311.2 million for the year.

STOCK: The stock rose $5.40, or 28.80 percent, to $24.15 Monday. The shares are up about 40 percent since its initial public offering price of $17 in June.