GOGO to Transform In-Flight Connectivity for Business Aviation
Gogo Inc GOGO reached a significant achievement by successfully establishing end-to-end connectivity through its Gogo Galileo global broadband service and utilizing the HDX antenna on the fully operational Eutelsat OneWeb Low Earth Orbit satellite network.
The company further added that the commercial launch of Gogo Galileo is scheduled for later this year. Gogo Galileo will transform in-flight connectivity for business aviation, particularly for small jets that currently have limited options, especially outside North America.
Flight testing with the HDX terminal is scheduled to start in the summer, with certification and commercial launch anticipated later in the year, added the company.
Gogo Inc. Price and Consensus
Gogo Inc. price-consensus-chart | Gogo Inc. Quote
Per a report from Grand View Research, the global in-flight entertainment and connectivity market was valued at $5.96 billion in 2022 and is anticipated to witness a CAGR of 8.4% from 2023 to 2030. The industry is likely to benefit from growing demand for onboard wireless connectivity solutions and services, added the report.
In March, the company announced the commencement of virtual flight simulation testing for its 5G software and expects to launch Gogo 5G later this year. The testing uses an advanced virtual flight simulator, which was developed by the radio frequency engineering team. Gogo is simulating the radio channel in an airborne environment to evaluate the Gogo 5G software with more than 90% confidence.
Gogo 5G is anticipated to surpass any rival geosynchronous satellite or air-to-ground option, with peak speeds in the 75-80 Mbps range and an average speed of about 25 Mbps. Gogo 5G is designed to fulfill the growing demand for data-intensive services and applications. It is intended to deliver high throughput with very low latency for multiple users.
GOGO currently carries a Zacks Rank #3 (Hold). Shares of GOGO have lost 39.3% in the past year against the sub-industry’s growth of 7.5%.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Synopsys SNPS, Woodward WWD and Perion Network PERI. Synopsys and Perion Network sport a Zacks Rank #1 (Strong Buy), while Woodward carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ 2024 earnings per share (EPS) has improved 0.3% in the past 60 days to $13.46. SNPS’s long-term earnings growth rate is 17.5%.
Synopsys’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4.1%. SNPS shares have risen 56.1% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has moved up 5.7% in the past 60 days to $5.27. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 27.2%. WWD shares have risen 62.3% in the past year.
The Zacks Consensus Estimate for Perion Network’s fiscal 2024 EPS has improved 0.6% in the past 60 days to $3.34. PERI’s long-term earnings growth rate is 22%.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.9%. PERI shares have lost 42% in the past year.
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