TransMedics Sees Its Earnings Soar
Here's our initial take on TransMedics' (NASDAQ: TMDX) second-quarter financial report.
TransMedics reported second-quarter financial results that were considerably better than most investors had anticipated. On the sales front, gains of 38% to $157 million were healthily higher than projected, as the organ transplant specialist reported particularly strong gains in utilization of TransMedics' Organ Care System (OCS) for liver and heart transplant procedures. Gross margin stayed stable at 61%, reflecting disciplined cost controls in production of TransMedics' groundbreaking medical devices.
Equally important, though, was the effort that TransMedics made to keep costs in check. Operating expenses were up just 6% in the quarter. That allowed profits to jump to nearly $35 million for the quarter, up from just over $12 million in the year-earlier period. The excellent financial performance has allowed TransMedics to accumulate a healthy cash hoard that now exceeds $400 million in value.
Source Fool.com
