Why TransMedics Stock Is Sinking Today
TransMedics stock slipped on mixed results, but its future remains bright.
Overview
Shares of leading, next-gen organ transplant systems specialist TransMedics (NASDAQ: TMDX) are down 8% as of 1 p.m. ET Wednesday after the company reported underwhelming second-quarter earnings. Sales growth of 21% beat analysts' hopes, but adjusted net income was more than halved, falling short of expectations. While TransMedics' adjusted net income dropped from $35 million last year to $16 million in Q2 this year, it is worth noting that $19 million of this change comes from spending on a next-gen Kidney organ care system (OCS), two new clinical programs, and a manufacturing plant in Italy. Simply put, the company remains a growth stock happy to reinvest in its operations, so its earnings may be lumpy like this at times -- nothing to panic over.
All in all, it was a solid Q2 for TransMedics as:
Image source: The Motley Fool.
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Originally published at www.fool.com.