TransMedics: The Margins Must Recover

Impact · against what's priced in

TransMedics faces short-term valuation pressure as Q1 gross margins fell to 58.2% and adjusted EPS dropped to $0.30. However, the 21% revenue growth and the development of an integrated transplantation network support the long-term growth thesis.

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In context

The drop in adjusted EPS to $0.30 and gross margin to 58.2% creates immediate headwinds, though these are partially offset by 21% revenue growth and the strategic build-out of a transplantation network.

Read from the article alone

• growth stocks▲40%
• healthcare▲13%
• earnings▲3%
• valuation
• TMDX
• margins
• medtech