TransMedics Stock Rises as Q4 Earnings & Revenues Beat Estimates

Core Insights - TransMedics Group, Inc. (TMDX) reported fourth-quarter 2024 earnings per share (EPS) of 19 cents, exceeding the Zacks Consensus Estimate of 18 cents by 5.6% and up from 12 cents in the same period last year [1] - The company achieved revenues of $121.6 million, reflecting a year-over-year increase of 49.8% and surpassing the Zacks Consensus Estimate by 10.2% [2] Financial Performance - For the full year 2024, TMDX recorded total sales of$ 441.5 million, an increase of 83% compared to 2023, with an EPS of $1.01 compared to a loss of 77 cents in 2023 [9] - Gross profit for the fourth quarter improved by 50.3% to$ 72 million, with a gross margin of 59.2%, slightly up from 59% in the fourth quarter of 2023 [10] - Operating income totaled $8.6 million, compared to$ 2.6 million in the year-ago period [12] Revenue Breakdown - Net product revenues, which include sales of OCS Perfusion Sets, OCS Solutions, and OCS Consoles, reached $74.9 million, up 44.5% year over year [5] - Service revenues, generated from logistics services supporting transplant programs, improved by 59.3% year over year to$ 46.7 million during the fourth quarter [8] Operational Highlights - TransMedics has three FDA-approved OCS products for heart, lung, and liver transplantations, representing the only FDA-approved portable, multi-organ, warm perfusion technology platform [4] - The company operates a National OCS Program, providing outsourced organ retrieval and management services, enhancing the efficiency of donor organ procurement [5][6] Market Reaction - Following the strong quarterly performance, TMDX shares rose by 6.9% in after-hours trading on February 27, although the shares have declined by 56.8% over the past six months [3] Future Guidance - For 2025, TransMedics expects revenues to be in the range of $530-$ 552 million, indicating a growth of 20-25% from 2024 levels, with the Zacks Consensus Estimate at $523.4 million [14]