What's behind GOGO's consistent EPS growth?

Gogo Inc. (GOGO) has recently reported a significant miss in its EPS, with a reported loss of $0.22 per share, compared to the forecasted gain of $0.0567. This raises the question about the factors contributing to Gogo's inconsistent EPS performance. 1. **Impact of Satcom Direct Acquisition**: The acquisition of Satcom Direct has significantly impacted Gogo's financial performance. While it contributed $40.2 million in revenue during the fourth quarter, it also brought in $46.8 million in pre-tax expenses, leading to a net loss of $28.2 million. This acquisition-related expenses have heavily influenced Gogo's EPS. 2. **Strategic Innovations and Market Position**: Despite the challenges, Gogo's strategic innovations and market position in the IT Services industry are key factors in its revenue growth. The company reported a 41% increase in revenue, reaching $137.8 million, surpassing the estimated $97.35 million. This growth is bolstered by a 47% rise in service revenue, reflecting its strong market position in in-flight connectivity. In conclusion, Gogo's EPS is currently under pressure due to the acquisition-related expenses from the Satcom Direct acquisition. However, the company's strategic innovations and market position in the IT Services industry have driven a significant increase in revenue, indicating a promising growth trajectory. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |GOGO|GOGO.O|Gogo|2024 Q1|53.33333333333334|0.23|185| |GOGO|GOGO.O|Gogo|2024 Q2|-98.50746268656717|0.01|185| |GOGO|GOGO.O|Gogo|2024 Q3|-50|0.08|185| |code|Ticker|Name|Date|Total Revenue|Net Income|market_code| |---|---|---|---|---|---|---| |GOGO|GOGO.O|Gogo|2024 Q1|1.04322E8|3.049E7|185| |GOGO|GOGO.O|Gogo|2024 Q2|1.02059E8|839000|185| |GOGO|GOGO.O|Gogo|2024 Q3|1.00529E8|1.063E7|185| |GOGO|GOGO.O|Gogo|2024 Q4|1.37799E8|-2.8213E7|185|