Why Boingo Wireless, Inc. Stock Soared 40% Higher Today

What happened

Shares of Boingo Wireless (NASDAQ: WIFI) are skyrocketing today, following the release of fantastic second-quarter results. The maker of distributed antenna systems and small cells for wireless network installations saw share prices soar as much as 40.5% higher before cooling down to a 39.7% gain as of 1:45 p.m. EDT.

So what

In the second quarter, Boingo’s top-line revenues rose 22% year over year to $59.6 million. Analysts had been expecting approximately $56.5 million on this line of the income statement. Further down that document, adjusted earnings swung from a net loss of $0.20 per share to a profit of $0.05 per share. Your average analyst was still looking for red ink here.

Image source: Getty Images.

Now what

The company closed 15 new contracts with wireless carriers in the second quarter, up from seven in the year-ago period. With a backlog of 78 distributed antenna installations yet to perform, Boingo should deliver solid revenue growth for the foreseeable future.

The stock has now gained a market-beating 116% over the last 52 weeks and 233% in a three-year period. It’s no surprise to see the stock chart pushing upward again when Boingo Wireless delivers rapid-growth results of this stellar caliber.

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of Boingo Wireless. The Motley Fool has a disclosure policy.

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