On Tuesday, after the market bell, Gogo Inc. (GOGO) shared jolly news of the company entering the S&P SmallCap 600. This addition is a result of the removal of SPX FLOW Inc. from the index. Since SPX Flow is acquired by Lone Star Funds now, it will now be removed from the index. Thus, GOGO is set to join the index with the move effective on April 8, 2022, before the opening of trading on the day.
Consequently, the stock rebounded in the after-hours to soar by a nice 11.83%. In the prior trading session, the stock had suffered a decline of 2.98% at its closing price of $19.19 per share. GOGO was trading at a value of $21.46 per share in the after-hours on Tuesday. Hence, the inflight internet company stock recorded its new 52-week high in late trading against its previous $19.98.
Aviation Industry Post-pandemic
The aviation industry was one of the biggest hit-takers of the Covid-19 pandemic. While the industry has had a fair share of its own problems over the years, the global entry restrictions, passenger reductions, and related issues gave a serious blow to the airlines sector in the pandemic surge. Still recovering, the industry has witnessed huge innovation and technological advancement in the past few years. The pandemic has only increased this momentum.
Moreover, the industry, as well as the global economy, have benefited from the inflight internet system market. Poised for considerable growth in the future, this market also had its own share of problems arising from the pandemic.
GOGO’s Performance and Outlook
A notable name in the inflight internet market, GOGO recently came out with quarterly earnings of $0.17 and revenue of $92.3 million. The company surpassed the prevailing market expectations and provided upbeat guidance. Working on its plans for the 5G system launch for inflight internet, the company expects 2022 revenue between $380 and $395 million. Furthermore, with a planned increase in 5G investments, the adjusted EBITDA is expected to be $250-$160 million.
Not just 2022, the company also expects considerable growth in the long term spanning over the ongoing decade. It was only recently, that GOGO’s AVANCE Systems reached 1 million business aviation flights.
Conclusion
Following the news of the company joining S&P SmallCap 600, GOGO investors became super excited. Their excitement led the stock towards its new 52-week high in the after-hours trading on Tuesday.