Stock Track | TransMedics Stock Plunges on Disappointing Q3 Results Despite Strong Revenue Growth

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TransMedics Group Inc. (TMDX) saw its shares plummet by over 30% on October 29, 2024, after the medical technology company reported disappointing third-quarter financial results that missed analysts' expectations for both earnings and revenue, despite strong year-over-year revenue growth.

For the quarter ended September 30, 2024, TransMedics reported earnings per share of $0.12, significantly lower than the consensus estimate of $0.30. The company's revenue surged by 64% year-over-year to $108.8 million, driven by increased utilization of its Organ Care System (OCS) across all three organs and additional revenue from logistics services. However, the revenue figure fell short of analysts' expectations of $115.0 million.

Despite the top-line miss, TransMedics reiterated its full-year 2024 revenue guidance of $425 million to $445 million, representing growth of 76% to 84% compared to 2023. The company cited strong utilization of its OCS products and growing demand for its logistics services as the primary drivers for the projected revenue growth.

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