TransMedics Group Inc. shares
jumped more than 40% premarket on Tuesday after the company reported third-quarter results reflecting growing demand for its organ-transplant services and raised its full-year revenue outlook.
The company late Monday reported a net loss of $25.42 million, or 78 cents per share, compared with a loss of $7.43 million, or 25 cents per share, in the year-earlier period. The FactSet consensus was a loss of 16 cents per share. Revenue totaled $66.43 million, up from $25.68 million and ahead of the FactSet consensus of $49.2 million.
TransMedics raised its full-year sales guidance to a range of $222 million to $230 million, up from prior guidance of $180 million to $190 million.
Sales growth was driven by increasing demand for the company’s Organ Care System products, which use a technology designed to better preserve and assess donor organs and reduce the number of unused organs, according to TransMedics. The system, which focuses on lung, heart and liver transplants, maintains the organs in a living, functioning state.
The net loss in the quarter was driven primarily by $29.2 million in acquisition-related costs, TransMedics said. The company recently closed its acquisition of Summit Aviation as it prepares to launch a new transplant aviation business.
Oppenheimer analysts on Tuesday called the results a “blockbuster” quarter for TransMedics, saying the company’s strategy of offering an organ-transplant logistics and service one-stop shop, “while bumpy short-term, should yield dividends long-term.” The company’s organ-care system, the analysts wrote, “represents a disruptive technology that could potentially revolutionize solid organ preservation and transport” by narrowing the gap between demand and supply of donor organs and expanding the pool of usable organs.
More than 100,000 people in the U.S. are on the national transplant waiting list, according to federal government data.
TransMedics shares are down 35% in the year to date, while the S&P 500 has gained 13.7%.