TMDX and RGEN Report
TransMedics (TMDX) reported yesterday afternoon with revenue beating while EPS came in a little light. Revenue rose 150% to $20.5 million (beating by $4.2 million) while GAAP EPS of -$0.41 missed by $0.06. Big picture, this was a good quarter and adds to the positive momentum the company showed last quarter. While the stock is down today I don’t think that’s going to last. Management was cautious on the conference call due to risks around inventory depletion (it’s trying to triple manufacturing capacity) and air transport fulfillment, but the company still raised full-year guidance by $8 million on the low end (roughly twice the Q2 beat) to a range of $67 - $75 million (up from $59 - $65 million). Should TransMedics be able to execute (management did go on to say they see the high end of guidance as achievable) and continue to ramp up the NOP program we should see revenue growth top 150% this year and 50% next year. TransMedics also refinanced a loan and was able to add $23 million in cash to the balance sheet. Keeping at Buy Half (though probably not a bad idea to add a few shares today) and we’ll watch for further weakness to fill the other half. BUY HALF
Repligen (RGEN) reported this morning and beat on both the top and bottom line, while also raising guidance. Revenue of $207.6 million grew by 27.4% and beat by $18.6 million while EPS of $0.91 beat by $0.20. Full-year revenue guidance went up $20 million at the low end to a range of $790 - $810 million (from $770 - $800 million) while EPS jumped by about $0.06 to a range of $3.13 - $3.20. Helping the stock is news that the base business accounted for 80% of revenue while Covid-related sales were just 17% of revenue (the other 3% came from acquisitions). And management sees growth in the base business picking up to 31% to 33% this year, up from previous guidance of 24% to 31% growth. This significantly helps reduce concerns that Repligen’s business has become overdependent on Covid. I moved to buy last week and am keeping it there, though I suggest smaller purchases for the next few days as the market digests the earnings report and stock reaction (RGEN is up 11.5% today). BUY