GOGO - Embedded Expectations Analysis - 2018 02 01
− Gogo Inc. (GOGO:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Assets, with a 1.6x Uniform P/B. However, even at these levels, the market somewhat has bullish expectations for the firm, although management has concerns about growth, revenue, and margins− Specifically, management may have concerns about their ability to make their
100-megabit per second next-gen ATG network commercially available by this time next year, and may lack confidence in their ability to meet expectations for EDBITDA growth in the future. Furthermore, they may have concerns about flat annualized ARPA year-over-year, and may lack confidence in their ability to improve profit margins to past levels. Moreover, they may lack confidence in their ability to reach the high end of their revenue guidance range, and may be exaggerating the robustness of the ARPA for ROW
Gogo is a holding company. Through its operating subsidiaries, the company is a provider of in-flight broadband connectivity and wireless entertainment services. The company's segments are: Commercial Aviation North America, which provides air-to-ground and satellite connectivity and entertainment services to commercial aircraft flying routes within North America; Commercial Aviation Rest of World, which provides satellite connectivity and entertainment services to commercial aircraft flying routes outside of North America; and Business Aviation, which provides integrated equipment, network and Internet connectivity products and services to the business aviation market.
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