Organ Transplant-Focused TransMedics Stock Soars, Solid Q3 Performance In Focus

TransMedics Group Inc TMDX reported Q3 revenues of $66.4 million, a 159% Y/Y increase, beating the consensus of $49.19 million.

The increase was due primarily to greater utilization of the company's NOP across all three OCS products and the addition of logistics and aviation revenue. 

Revenue from the new, transplant-related aviation and logistics offerings was $2.1 million. Additionally, total revenue includes $1.6 million in non-recurring revenue attributable to Summit Aviation's charter business that TransMedics intends to exit in early 2024.

Also Read: TransMedics Revolutionizing Global Organ Transplant Market: Analyst Initiates With Buy Rating.

The company reported a Q3 EPS loss of $(0.78), down from $(0.25) a year ago.

Q3 gross margin was 61%, compared to 71% a year ago, unfavorably impacted by transition initiatives following the Summit Aviation acquisition and the expected inefficiencies inherent in transitioning out of its legacy charter business and the launch of the new transplant aviation business.

Cash was $427.1 million as of September 30, 2023.

Guidance: TransMedics has updated its FY23 revenues guidance to $222 million-$230 million, compared to prior guidance of $180 million-$190 million and the consensus of $205.34 million.

Price Action: TMDX shares are up 52% at $61.10 on the last check Tuesday.