What happened
The latest quarterly earnings report from healthcare equipment company TransMedics Group (TMDX 3.55%) brought a great many bulls back to the stock. On the back of convincing beats on analyst estimates plus strong guidance, the share price was up nearly 18% week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
So what
On Wednesday, TransMedics published its fourth-quarter and full-year 2022 results. For the former period, it booked $31.4 million in revenue, which was a mighty 225% higher year over year. Compounding that, the niche healthcare company significantly trimmed its net loss -- this came in at $6.7 million, or $0.21 per share, a notable improvement over Q4 2021's $12.7 million shortfall.
Both headline figures were far better than analysts expected. Collectively, prognosticators following TransMedics stock were anticipating slightly under $24.5 million in revenue and a $0.30-per-share net loss.
During the quarter, TransMedics benefited handsomely from the expansion of its national organ care system, under which its main activity (organ transplants) is conducted. The company sells the only multiple organ transplant system currently approved by the U.S. Food and Drug Administration.
Now what
If anything, TransMedics' revenue guidance was even more encouraging than those vast top- and bottom-line improvements. For full-year 2023, the company is forecasting total revenue of $138 million to $145 million. That would be at least 48% higher than the 2022 result, while the range is comfortably higher than the $134.7 million average analyst estimate.
