TransMedics Group TMDX is scheduled to report third-quarter 2024 results on Oct. 28, after market close.
In the last reported quarter, the company’s adjusted earnings per share of 35 cents surpassed the Zacks Consensus Estimate by 66.7%. Earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 287.5%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
TMDX’s Q3 Estimates
The Zacks Consensus Estimate for revenues is pegged at $114.2 million, implying 71.9% growth from the year-ago reported figure.
The Zacks Consensus Estimate for earnings per share of 28 cents indicates 333.3% growth year over year.
Estimate Revision Trend Ahead of TMDX's Earnings
Estimates for TransMedics’ third-quarter earnings have moved north 3.7% in the past 30 days.
Let us take a look at how things might have shaped up for the MedTech major prior to the announcement.
Factors at Play
We expect the company to have experienced third-quarter revenue growth, driven by a continued uptrend in Organ Care System (“OCS”) products as well as transplant logistics services revenues. In the second quarter, the company saw significant growth in case volume across lung, heart and liver OCS and increased usage of the National OCS Program (“NOP”). It might have also witnessed substantial growth in U.S. commercial and Outside U.S. commercial revenues.
In the second quarter, approximately 126 U.S. transplant programs used TransMedics logistics, marking a significant improvement from approximately 105 in the first quarter. We expect this positive trend to have sustained in the quarter to be reported. In the previousearnings call the company highlighted its expanding transplant logistics services as the key catalyst for the company’s near and long-term growth.
In terms of clinical programs, the company has continued to advance its latest OCS lung and heart programs designed to reinvigorate the OCS lung market and expand clinical indications on offering for OCS Heart. Per the latest update, a significant number of preclinical testing has been done to evaluate the impact of these new OCS Lung and Heart developments. The results demonstrated successful maintenance of donor lungs and hearts on OCS perfusion for more than 24 hours. These developments are likely to have positively impacted the company’s top line in the quarter under review.
TransMedics Group, Inc. Price and EPS Surprise
TransMedics Group, Inc. price-eps-surprise | TransMedics Group, Inc. Quote
Within transplant logistic service, earlier this year, the company expanded its fleet of owned aircraft. In July, it added two new aircrafts, making the total aircraft count 17 to date. The company made a significant investment in TransMedics aviation pilot headcount, doubling the pilot crew size from the first quarter. These investments were made to cater to the expected growth in demand for OCS NOP missions in 2025 and beyond. In line with this, the daily average number of active TransMedics aviation planes grew to approximately 11. Additionally, the company expects this number to increase to 20 operational aircraft by the year end. Considering all the developments, we expect transplant logistic service to grow and impact the company’s top line in the third quarter.
What Our Model Predicts for TMDX
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating on earnings, which is exactly the case here.
Earnings ESP: TransMedics has an Earnings ESP of +26.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are some other medical stocks worth considering, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Atea Pharmaceuticals AVIR has an Earnings ESP of +13.13% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to release third-quarter 2024 results soon. AVIR’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 5.23%.
RadNet RDNT has an Earnings ESP of +20.00% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2024 results shortly.
RDNT’s earnings surpassed estimates in three of the trailing four quarters and met the same in one, the average surprise being 98.23%. The Zacks Consensus Estimate for RadNet’s third-quarter EPS implies an increase of 7.14% from the year-ago quarter’s reported figure.
Masimo MASI has an Earnings ESP of +0.40% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2024 results shortly. The Zacks Consensus Estimate for third-quarter EPS implies a surge of 33.3% from the year-ago quarter’s reported actuals.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
