TransMedics (Nasdaq:TMDX) shares rose this morning on first-quarter results that beat the consensus forecast.
Shares of TMDX ticked up 1.2% at $78.78 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 0.3%.
The Andover, Massachusetts-based organ transplant technology developer posted losses of $2.6 million. That amounts to losses of 8¢ per share on sales of $41.6 million for the three months ended March 31, 2023.
TransMedics posted a 75% bottom-line gain as it crept closer to breakeven. It more than doubled its sales from revenues of $15.9 million in the same period a year ago. The company attributed its growth primarily to National OCS (organ care system) Program (NOP) adoption in the U.S. That led to an increase in OCS Liver and OCS Heart sales.
Earnings per share came in 17¢ ahead of expectations on Wall Street, where analysts projected sales of $36.1 million.
“In the first quarter we made significant progress in scaling production capacity while further demonstrating the transformational impact of our OCS technology and National OCS Program on organ transplantation in the U.S.,” said Dr. Waleed Hassanein, president and CEO. “Even with this strong performance we believe we remain in the early stage of our longer-term growth trajectory as we strive to continuously deliver more lifesaving organs to more patients while also expanding our reach across the Unites States and globally.
“We remain highly focused on executing on our growth strategy while proactively navigating potential challenges to achieve our goals.”
With its strong results, TransMedics upped its guidance for 2023 after previously projecting revenues between $138 million and $145 million. The company now expects sales between $160 million and $170 million, marking 71% to 82% growth from 2022.