On Monday, TransMedics Group (NASDAQ:TMDX) received a continued vote of confidence from Oppenheimer, with the firm maintaining its Outperform rating and a $125.00 price target on the stock.
The company, which has delivered impressive revenue growth of 109% over the last twelve months and maintains a strong gross profit margin of 59%, saw its shares trading at $85.14. The affirmation of the rating followed TransMedics' recent announcement regarding a significant executive transition and an update on its financial outlook.
TransMedics, a medical technology company, declared the immediate appointment of Gerardo Hernandez as Chief Financial Officer. According to InvestingPro data, Hernandez joins at a time when the company demonstrates solid financial health with a current ratio of 8.2 and moderate debt levels. Hernandez, who previously served as Vice President of Finance at Alnylam Pharmaceuticals (NASDAQ:ALNY), steps into the role succeeding Stephen Gordon. Gordon will take on a non-executive position until the end of March 2025, after which he will become a senior advisor with a focus on national transplant stakeholder engagement until March 2026.
In addition to the executive change, TransMedics also revised its revenue guidance for the fiscal year 2024. The company now expects revenues to range between $428 million and $432 million. This update narrows the prior guidance, which was set between $425 million and $445 million. The revised forecast aligns closely with current market estimates, which stand at $435 million and $432 million from Oppenheimer and the consensus, respectively.
Investors and analysts are anticipating further details regarding the CFO transition and the updated guidance, which are expected to be discussed at TransMedics' Investor Day scheduled for the upcoming Tuesday, December 10th. The event is likely to provide additional insights into the company's strategy and financial planning for the coming year.
In other recent news, TransMedics Group Inc (NASDAQ:TMDX). announced the appointment of Gerardo Hernandez as the new Chief Financial Officer. Hernandez brings over 25 years of financial leadership experience, having held significant roles at Alnylam Pharmaceuticals and Shire. Stephen Gordon, the previous CFO, will transition to a senior advisory role focusing on national transplant stakeholder engagement.
TransMedics also issued updated revenue guidance for the full year 2024, projecting revenues to be between $428 million and $432 million, representing a growth of 77% to 79% compared to the previous year. Despite this robust growth, the projection is lower than previously guided.
In terms of analyst upgrades and downgrades, Needham downgraded TransMedics from Buy to Hold due to increasing competitive pressures and a potential slowdown in the company's expansion. Conversely, Canaccord Genuity maintained a Buy rating but adjusted its price target for TransMedics to $104 from the previous $109.
The company reported a substantial 64% year-over-year increase in its third-quarter revenue, totaling $108.8 million. This growth was primarily driven by a 76% rise in U.S. sales, despite a 40% decline in international sales. The company also reported a GAAP operating profit of $3.9 million and a net income of $4.2 million.
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