Can GOGO sustain its EPS momentum in 2025?
4/5/2025 05:26pm
**Gogo's EPS momentum in 2025 is likely to face significant challenges.** Here's why:
1. **Recent Performance**: Gogo's Q4 2024 earnings report showed a significant miss on EPS, with a loss of $0.22 compared to a forecasted gain of $0.0567. This represents a negative surprise of approximately 488%.
2. **Insufficient Data for 2025**: There are no available data or forecasts regarding Gogo's EPS for 2025.
3. **Acquisition-Related Expenses**: The company has faced challenges due to acquisition-related expenses, which have impacted its net income and EPS. For instance, the Satcom Direct acquisition resulted in $46.8 million in pre-tax expenses in Q4 2024.
4. **Strategic Investments**: Gogo is investing strategically in areas like connectivity enhancements and aftermarket certifications, which could impact short-term profitability but are crucial for long-term growth.
5. **Market Sentiment and Insider Activity**: Despite the challenges, there is some positive sentiment from insiders, with a director, Charles C. Townsend, purchasing over $1.3 million in stock, indicating confidence in the company's future.
In conclusion, while there are some positive indicators, the likelihood of Gogo sustaining its EPS momentum in 2025 appears low due to the recent earnings miss, strategic investments, and acquisition-related expenses. The company's focus on long-term growth and insider confidence may provide some support, but the near-term EPS outlook remains uncertain.