Why Gogo Inc. Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of in-flight Internet connectivity technologist Gogo Inc. surged 23% today after its quarterly results and outlook topped Wall Street expectations.

So what: The stock has soared over the past three months on optimism over accelerating growth, and today's Q3 results -- loss narrowed to $0.22 per share from the year-ago loss of $4.27 on a revenue increase of 48% -- coupled with upbeat guidance only reinforce that excitement. In fact, Gogo's aircraft online count increased 24% during the quarter to 2,011, giving analysts plenty of good vibes over its signup trajectory going forward.

Now what: Management now sees 2013 revenue of roughly $325 million, well above its prior range of $305-$315 million, as well as Wall Street's view of $311.49 million. "We believe that the unique combination of our industry leading scale, technological prowess, and track record of execution ideally positions Gogo for long-term growth in North America and internationally," said President and CEO Michael Small. Of course, with Gogo shares now up about 140% from its 52-week lows and trading at price-to-sales above 5, much of that growth might already be baked into the valuation.

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The article Why Gogo Inc. Shares Soared originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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