Is GOGO's EPS growth rate accelerating?
4/5/2025 05:26pm
**Gogo's EPS growth rate is not currently accelerating.** Here's an analysis to support this conclusion:
1. **Recent Performance**: Gogo's most recent EPS was a loss of $0.22 for Q4 2024, missing the forecasted gain of $0.0567. This indicates a challenging period for the company in terms of profitability.
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS (TTM) YoY|Diluted EPS (FY) YoY|market_code|
|---|---|---|---|---|---|---|---|
|GOGO|GOGO.O|Gogo|20201231|||-67.95580110497237|185|
|GOGO|GOGO.O|Gogo|20211231|||142.10526315789474|185|
|GOGO|GOGO.O|Gogo|20221231|||-44.53125000000001|185|
|GOGO|GOGO.O|Gogo|20231231|||53.5211267605634|185|
|GOGO|GOGO.O|Gogo|20240331|53.33333333333334|||185|
|GOGO|GOGO.O|Gogo|20240630|-98.50746268656717|||185|
|GOGO|GOGO.O|Gogo|20240930|-50|||185|
|GOGO|GOGO.O|Gogo|20241231|||-90.82568807339449|185|
2. **Comparative Analysis**: When comparing the current EPS of $0.22 to the previous year's EPS, it's important to note that the year-ago quarter had an EPS of $0.11. This shows a decline in EPS rather than an acceleration.
3. **Analyst Expectations**: Analysts had forecasted an EPS of $0.09 for the quarter, which was revised downward to the current EPS of $0.22. This revision reflects a more cautious outlook from analysts, suggesting that they do not expect an acceleration in EPS growth in the near term.
4. **Strategic Factors**: The company's revenue growth, although substantial at 41% year-over-year, was partly offset by acquisition-related expenses and a negative free cash flow of $39.6 million. These factors indicate that Gogo is facing significant challenges that could impact its EPS growth rate.
5. **Market Sentiment**: Despite the EPS miss, the company's stock showed resilience, with a slight increase in pre-market trading following the earnings release. This suggests that the market may be more focused on the revenue growth and future prospects rather than the immediate EPS trajectory.
In conclusion, the evidence points to Gogo's EPS growth rate not accelerating at the moment, primarily due to operational challenges and strategic factors impacting profitability.