Organ Transplant MedTech TransMedics Q3 Performance Disappoints, Analyst Outlines Investor Worries

TransMedics Group Inc (NASDAQ:TMDX) stock is trading lower on Tuesday.

The organ transplant medtech company reported a third-quarter EPS of $0.12, missing the consensus of $0.30. It reported sales of $108.8 million, up 64% year over year, but it missed the consensus of $115 million.

The increase was driven primarily by the increased utilization of the Organ Care System (OCS) across all three organs through the National OCS Program (NOP) and additional revenue generated by TransMedics logistics services.

Gross margin was 56%, compared to 61% in the third quarter of 2023, due to a higher proportion of service revenue than product revenue, which carries a higher margin in 2024.

Guidance: TransMedics expects fiscal year 2024 sales of $425 million—$445 million, compared to the consensus of $444.4 million.

“Overall, we remain well on track to reach our stated target of ...