TransMedics (Nasdaq: TMDX) is starting the year with a strong quarter.
The Andover, Massachusetts–based medtech company, which offers an organ care system (OCS) for transplant therapy, hit $143.5 million in revenue for the first quarter, up 48% year over year, according to its Q1earnings release out after market close yesterday.
The news sent TMDX shares up more than 21% to $112.77 apiece by midday trading today.
The company reported 70¢ in quarterly earnings per share, significantly outstripping the Zacks Consensus Estimate of 29¢ per share. This is a continuation of a trend for TransMedics. The company has beat consensus earnings per share three times over the past four quarters, Zacks noted.
“We are confident in our ability to sustain this momentum through 2025 and beyond by remaining laser-focused on operational execution and leveraging the unrivaled capabilities of OCS NOP to expand the utilization of available donor organs for transplantation,” said Dr. Waleed Hassanein, TransMedics president and CEO.
The company’s confidence is reflected in its updated guidance. In February, TransMedics was anticipating full-year revenue of $530 million to $552 million. Following its Q1 performance, it bumped that guidance up to $565 million to $585 million.
During the quarterly earnings call, company leadership discussed plans for continued growth and potential challenges.
As of March 31, TransMedics owns a fleet of 21 aircrafts, bringing it close to its goal of owning 22 before the end of the year.
The company has plans to open a new manufacturing facility in Mirandola, Italy, which the company chose for its perfusion technology innovation.
“Our main revenue-generating product is [a] perfusion disposable unit that is made of polycarbonate and polyurethane. And it has the same components that [have] significant engineering and design and manufacturing talent that exists in Mirandola, Italy,” Hassanein explained on the earnings call.
TransMedics is also gearing up for new lung and heart clinical programs, but it is waiting on FDA approval. The timing remains uncertain, and the company is not anticipating these programs will be major growth drivers this year.
Tariffs represent a significant headwind for many companies in the medtech space. In the earnings call, Hassanein said that proposed tariff policies are expected to have little impact on TransMedics business, while acknowledging that new policies could change that.
Carrie Pallardy is a freelance writer and editor based in Chicago. She has more than a decade of experience writing and reporting in the healthcare space.
