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TransMedics Group, Inc. (NASDAQ:TMDX) just released its second-quarter report and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analysts had forecast, at US$114m, while EPS were US$0.35 beating analyst models by 66%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TransMedics Group after the latest results.
View our latest analysis for TransMedics Group
Following the latest results, TransMedics Group's nine analysts are now forecasting revenues of US$439.1m in 2024. This would be a huge 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 1,189% to US$1.17. Before this earnings report, the analysts had been forecasting revenues of US$401.5m and earnings per share (EPS) of US$0.98 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 11% to US$163per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values TransMedics Group at US$200 per share, while the most bearish prices it at US$117. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 50% growth on an annualised basis. That is in line with its 60% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.1% per year. So although TransMedics Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.