TransMedics stock rocketed to a seven-month high Friday after the company beat Wall Street's first-quarter expectations and hiked its 2025 revenue guidance.
The Andover, Mass.-based company sells its Organ Care System, or OCS, a miniaturized and portable system that infused donated organs with a cocktail of the donor's blood, nutrients and oxygen. This allows the donated organ to remain viable for longer until it can reach a transplant recipient.
During the first quarter, TransMedics generated $143.5 million in sales, surging 48% year over year and beating forecasts for $123.7 million, according to FactSet. Needham analyst Mike Matson noted sales growth slowed from 50% in the fourth quarter.
"But, more importantly, sequential growth improved to 18% in 1Q25 from 12% in Q424," he said in a client note.
TransMedics stock jumped 19.6%, closing at 111.50. That put shares at their highest point since October, helping them leapfrog their 200-day moving average, MarketSurge shows.
TransMedics Stock Earnings: Liver Transplants Drive Beat
First-quarter growth was driven by strong use of the OCS in liver transplants. TransMedics reported $109.1 million in liver OCS sales, beating expectations for $91.9 million and growing 63%. Heart OCS sales, though, missed at $29.5 million vs. forecasts for $29.8 million. Lung sales also came in light at $4.4 million, below calls for $4.6 million.
"TMDX is launching new clinical programs focused on evidence development with its next-gen systems and broadening clinical indications for OCS Heart and OCS Lung in 2H25 but does not expect a material impact from these until 2026," Needham's Matson said.
Still, he kept his hold rating on TransMedics stock.
TransMedics also earned 70 cents per share, on an adjusted basis, walloping expectations for 26 cents. Earnings doubled year over year.
Importantly, TransMedics raised its sales outlook for the year. The company now projects $565 million to $585 million in sales. The midpoint of TransMedics' new outlook is $34 million ahead of the guidance it issued three months ago.
TransMedics says it expects a "minimal impact" from tariffs, Needham's Matson said. The company makes its products in the U.S. Most of its products are also sold stateside. The company announced plans to build a facility in Italy to manufacture its OCS disposable perfusion kits.
TransMedics stock was on a roll a year ago with a high Relative Strength Rating of 97, according to IBD Digital. This means shares outranked 97% of all stocks when it comes to 12-month performance. Today, it has a lower RS Rating of 58, putting it somewhere toward the middle in terms of performance.
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