Hello my dears,
Now that $GILT (-0,38%) Gilat has found a place in my portfolio. The next satellite share is just around the corner. Which I would like to introduce to you today.
$GOGO (+0,74%) Gogo
2027. 2026. 2025
KGV 15.94 19.61 32.16
PEG. +0,85. +0,50
Profit growth +23.65% +54.17% +380.00%
Sales in million 966.00. 935.91. 903.35
Profit in million 119.85. 95.82. 59.40
Free cash flow in million 152.44. 123.61. 78.59
EbiT margin. 19,31%. 18,67%. 15,60%
Due to the good multiples, I am considering adding Gilat's competitor to the portfolio in the event of a consolidation.
The P/E ratio is falling and the PEG is below 1.
Important key figures are rising.
Gogo Inc (GOGO) is one of the leading providers of WLAN services for aviation and offers business aviation services in particular. The niche player is thus benefiting in particular in the business aviation segment, where demand for connectivity in aviation is growing. Expansion is also being accelerated. At the end of September, it was announced that an agreement had been reached to acquire Satcom Direct. According to the agreement, the purchase will cost USD 375 million in cash and five million Gogo shares. In addition, further payments of up to USD 225 million are possible, which are linked to the achievement of certain performance targets over the next four years. The transaction is expected to be immediately accretive to earnings and cash flow per share and is expected to generate annual cost synergies in the range of USD 25 to 30 million in the two years following closing.
On November 5, the Group's Q3 report was convincing. According to the report, turnover increased by 2.6% year-on-year to USD 100.50 million. Meanwhile, tax effects and the acquisition of Satcom Direct caused EPS to fall from USD 0.16 to USD 0.08. Nevertheless, the management was satisfied, as the basis for future growth was laid with the takeover. It is expected to accelerate Gogo Galileo's market penetration in the globally underserved business aviation market as well as in the military and government segments. Oakleigh Thorne, Chairman and CEO of Gogo, added: "The unprecedented demand for Galileo and Gogo 5G will drive strong growth in equipment sales in 2025 and an increase in profitable recurring service revenue from 2026." Meanwhile, the consensus for Q3 was only USD 97.3m in revenue and EPS was expected to be USD 0.05.
For the current financial year, the Group is still targeting revenue in the range of USD 400 million to USD 410 million, but adjusted EBITDA is now expected to reach USD 120 million to USD 130 million instead of the upper end of a range of USD 110 million to USD 125 million. This guidance reflects increased legal costs due to ongoing litigation and approximately USD 20 million in operating expenses for strategic and operational initiatives, including Gogo 5G and Gogo Galileo. The forecast range for free cash flow has also been raised. Instead of a range of USD 35 million to USD 55 million, a range of USD 55 million to USD 65 million is now being targeted. This includes USD 35 million in reimbursements from the FCC Reimbursement Program.
