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TransMedics (TMDX) Down 4.4% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for TransMedics (TMDX - Free Report) . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TransMedics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
TransMedics Q1 Earnings & Revenues Miss Estimates
TransMedics delivered earnings per share of 30 cents in the first quarter of 2026, down 59.5% year over year. The figure missed the Zacks Consensus Estimate by 51.6%.
TMDX’s Q1 Revenues in Detail
TransMedics registered revenues of $173.9 million in the first quarter, up 21% year over year. The figure fell short of the Zacks Consensus Estimate by 1%.
Per management, the year-over-year rise was driven by the increased utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP"), as well as additional revenues generated by TransMedics logistics services.
During the reported quarter, TMDX was able to cover 82% of its NOP missions requiring air transport compared with 78% in the first quarter of 2025.
TransMedics’ Segment Details
TMDX derives revenues via two sources: Net product revenues and Service revenues.
In the first quarter of 2026, Net product revenues totaled $108 million, up 22% year over year. Growth was driven by continued strong liver performance and modest growth in the heart.
Service revenues totaled $66 million, up 19% year over year, driven primarily by logistics revenues, supported by increased utilization of the TransMedics aviation fleet.
Transplant Logistics’ services revenues for first-quarter 2026 were $32 million, up 22% year over year. This resulted from the continued expansion and strong utilization of TransMedics’ aviation fleet.
TMDX’s Margin Trend
In the quarter under review, TransMedics’ gross profit increased 14.7% year over year to $101.2 million. The gross margin contracted 331 basis points (bps) to 58%.
Selling, general and administrative expenses rose 44.4% year over year to $62.9 million. Research, development and clinical trials expenses surged 45% year over year to $24.9 million. Total operating expenses of $87.9 million increased 44.5% year over year.
Adjusted operating profit totaled $18.1 million, reflecting a downtick of 39.2% from the prior-year quarter. The adjusted operating margin in the first quarter contracted 1030 bps to 10.4%.
TransMedics’ Financial Position
TransMedics exited first-quarter 2026 with cash of $461.7 million compared with $488.4 million at the end of 2025. Total long-term debt at the end of first-quarter 2026 was $44.5 million compared with $49.6 million at the end of 2025.
Net cash provided by operating activities at the end of first-quarter 2026 was $24.5 million, against net cash used in operating activities of $2.9 million a year ago.
TMDX’s 2026 Guidance
TransMedics reiterated its revenue outlook for 2026.
For 2026, the company expects revenues in the range of $727-$757 million, reflecting growth of 20-25% from the 2025 level. The Zacks Consensus Estimate is pegged at $739.7 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -29.46% due to these changes.
VGM Scores
Currently, TransMedics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, TransMedics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
TransMedics is part of the Zacks Medical - Instruments industry. Over the past month, Thermo Fisher Scientific (TMO - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended March 2026 more than a month ago.
Thermo Fisher reported revenues of $11.01 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $5.44 for the same period compares with $5.15 a year ago.
For the current quarter, Thermo Fisher is expected to post earnings of $5.75 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Thermo Fisher. Also, the stock has a VGM Score of D.
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TransMedics (TMDX) Down 4.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for TransMedics (TMDX - Free Report) . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TransMedics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
TransMedics Q1 Earnings & Revenues Miss Estimates
TransMedics delivered earnings per share of 30 cents in the first quarter of 2026, down 59.5% year over year. The figure missed the Zacks Consensus Estimate by 51.6%.
TMDX’s Q1 Revenues in Detail
TransMedics registered revenues of $173.9 million in the first quarter, up 21% year over year. The figure fell short of the Zacks Consensus Estimate by 1%.
Per management, the year-over-year rise was driven by the increased utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP"), as well as additional revenues generated by TransMedics logistics services.
During the reported quarter, TMDX was able to cover 82% of its NOP missions requiring air transport compared with 78% in the first quarter of 2025.
TransMedics’ Segment Details
TMDX derives revenues via two sources: Net product revenues and Service revenues.
In the first quarter of 2026, Net product revenues totaled $108 million, up 22% year over year. Growth was driven by continued strong liver performance and modest growth in the heart.
Service revenues totaled $66 million, up 19% year over year, driven primarily by logistics revenues, supported by increased utilization of the TransMedics aviation fleet.
Transplant Logistics’ services revenues for first-quarter 2026 were $32 million, up 22% year over year. This resulted from the continued expansion and strong utilization of TransMedics’ aviation fleet.
TMDX’s Margin Trend
In the quarter under review, TransMedics’ gross profit increased 14.7% year over year to $101.2 million. The gross margin contracted 331 basis points (bps) to 58%.
Selling, general and administrative expenses rose 44.4% year over year to $62.9 million. Research, development and clinical trials expenses surged 45% year over year to $24.9 million. Total operating expenses of $87.9 million increased 44.5% year over year.
Adjusted operating profit totaled $18.1 million, reflecting a downtick of 39.2% from the prior-year quarter. The adjusted operating margin in the first quarter contracted 1030 bps to 10.4%.
TransMedics’ Financial Position
TransMedics exited first-quarter 2026 with cash of $461.7 million compared with $488.4 million at the end of 2025. Total long-term debt at the end of first-quarter 2026 was $44.5 million compared with $49.6 million at the end of 2025.
Net cash provided by operating activities at the end of first-quarter 2026 was $24.5 million, against net cash used in operating activities of $2.9 million a year ago.
TMDX’s 2026 Guidance
TransMedics reiterated its revenue outlook for 2026.
For 2026, the company expects revenues in the range of $727-$757 million, reflecting growth of 20-25% from the 2025 level. The Zacks Consensus Estimate is pegged at $739.7 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -29.46% due to these changes.
VGM Scores
Currently, TransMedics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, TransMedics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
TransMedics is part of the Zacks Medical - Instruments industry. Over the past month, Thermo Fisher Scientific (TMO - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended March 2026 more than a month ago.
Thermo Fisher reported revenues of $11.01 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $5.44 for the same period compares with $5.15 a year ago.
For the current quarter, Thermo Fisher is expected to post earnings of $5.75 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Thermo Fisher. Also, the stock has a VGM Score of D.