Shares of TransMedics Group (NASDAQ: TMDX) were soaring 11.1% higher as of 11:22 a.m. ET on Thursday. The big gain came after the medical technology company announced its second-quarter results following the market close on Wednesday.
TransMedics reported Q2 revenue of $114.3 million, up 118% year over year. It generated net income of $12.2 million, or $0.35 per diluted share. In the same quarter of 2023, TransMedics posted a net loss of $1 million.
The company also raised its full-year revenue guidance to between $425 million and $445 million, which reflects year-over-year growth of 76% to 84%. TransMedics previously projected full-year revenue in the range of $390 million to $400 million.
TransMedics’ improved results in Q2 were primarily due to two factors. The company reported a significant increase in the utilization of its Organ Care System (OCS) for lungs, hearts, and livers. Its August 2023 acquisition of Summit Aviation also contributed to revenue growth. As of June 30, 2024, TransMedics had 15 aircraft in its fleet dedicated to transporting donor organs.
With today’s gain, TransMedics Group’s shares have roughly doubled so far in 2024. I think the medical device stock is still a great pick to buy, though. TransMedics continues to disrupt the organ transplant market and has a big market opportunity.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TransMedics Group. The Motley Fool has a disclosure policy.
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