TransMedics Group, Inc. TMDX reported fourth-quarter 2024 earnings per share (EPS) of 19 cents, which beat the Zacks Consensus Estimate of 18 cents by 5.6%. The company recorded an EPS of 12 cents in the year-ago period.

TransMedics registered revenues of $121.6 million, up 49.8% year over year. The figure surpassed the Zacks Consensus Estimate by 10.2%. The year-over-year increase in sales was driven by the rise in utilization of the Organ Care System (OCS) across all three organs and additional revenues generated by TransMedics logistics services.

Shares of TMDX were up 6.9% during after-hours trading on Feb. 27, likely following the company’s strong quarterly performance. However, the company’s shares have plunged 56.8% in the past six months compared with the industry’s decline of 2.4%. The S&P 500 Index was up 7% during the same timeframe.

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Q4 Highlights

TransMedics has three FDA-approved OCS products, each for heart, lung and liver transplantations. TMDX’s OCS products are the only FDA-approved portable, multi-organ, warm perfusion technology platform. The company’s OCS technology replicates many aspects of the organ’s natural living and functioning environment outside the human body.

TMDX also operates its National OCS Program, an innovative turnkey solution to provide outsourced organ retrieval, OCS organ management, and logistics services to support transplant programs in the United States, with a more efficient process of procuring donor organs with the OCS.

Revenues from sales to customers of OCS Perfusion Sets, OCS Solutions and OCS Consoles are classified as net product revenues. The company recorded net product revenues of $74.9 million, up 44.5% year over year.

The company also generates revenues from logistics services to support transplant programs in the United States. These services include aviation transportation, ground transportation and other coordination activities. As of Dec. 31, 2024, the company owned 19 aircraft and purchased two additional aircraft in the year-to-date period. It also generates revenues from organ retrieval and OCS organ management services.

These revenues are recorded as Service revenues, which improved 59.3% year over year to $46.7 million during the fourth quarter.

Full-Year 2024 Results

For 2024, TMDX registered total sales of $441.5 million, up 83% compared with 2023. TransMedicsreported an EPS of $1.01 for 2024 against a loss per share of 77 cents for 2023.

Margin Trend

In the quarter under review, TransMedics’ gross profit improved 50.3% to $72 million year over year. The gross margin in the fourth quarter of 2024 was 59.2%, showing a slight improvement from 59% in the fourth quarter of 2023.

Selling, general and administrative expenses rose 35.7% year over year to $46.9 million. Research and development expenses increased 52.9% year over year to $16.5 million. The operating expenses of $63.4 million increased 39.8% year over year. The increase in operating expense was driven primarily by increased research and development investment and investment throughout the organization to support growth of the company.

The operating income totaled $8.6 million compared with $2.6 million in the year-ago period.

Financial Position

TransMedics exited fourth-quarter 2024 with cash of $336.7 million compared with $330.1 million at the third quarter of 2024-end.

Cumulative net cash provided by operating activities at the end of 2024 was $48.8 million against cumulative net cash used in operating activities of $13 million in the year-ago period.

TransMedics Group, Inc. Price, Consensus and EPS Surprise

TransMedics Group, Inc. price-consensus-eps-surprise-chart | TransMedics Group, Inc. Quote

Guidance

TransMedics provided its sales outlook for 2025.

For 2025, the company expects revenues in the range of $530-$552 million, reflecting growth of 20-25% from the 2024 level. The Zacks Consensus Estimate is pegged at $523.4 million.

Zacks Rank and Stocks to Consider

Currently, TransMedics carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. CAH, ResMed Inc. RMD and Boston Scientific Corporation BSX.

Cardinal Health, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2025 adjusted EPS of $1.93, beating the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health has a long-term estimated growth rate of 10.7%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, beating the Zacks Consensus Estimate by 5.7%. Revenues of $1.28 billion surpassed the Zacks Consensus Estimate by 1.6%. It currently carries a Zacks Rank #2.

ResMed has a long-term estimated growth rate of 16%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Boston Scientific reported fourth-quarter 2024 adjusted EPS of 70 cents, beating the Zacks Consensus Estimate by 7.7%. Revenues of $4.56 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.

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