Few more thoughts on $TMDX drawdown.
The AOPO new DCD regulation isn't an issue. Waleed talked about it months ago, saying it was a good thing for both the industry and $TMDX and felt confident on its value proposition.
The real problem isn't here. $TMDX is a great company at an even better valuation, with massive tailwinds. The problem is short/medium term price action.
I'd assume the concerns around this news are twofold.
Volume. These new guidelines don't practically change anything, but they add an ethical framework focused on families’ and patients’ well-being.
I don’t think OPOs needed this to do their job well and respectfully, but the market could worry that more thorough explanations might lead to lower volume.
I personally think this is overblown.
NRP usage. The second concern might be that with clear guidelines on what is to be done in the case of NRP - mechanical blood flow within the body to preserve organs longer, notably when it comes to blood flowing to the brain, OPOs might shift away from $TMDX toward this practice.
Some concerns around NRP were ethical, and the speculation is that $TMDX was used to avoid those -and won’t be now that there is a clear framework on what is acceptable.
I also think this is overstated. $TMDX is simply a much more efficient system to use.
The real issue is that if these concerns are indeed part of the reason for this sell-off, the resolution won’t come today or tomorrow.
The market will either want communication or data to prove that $TMDX is just as strong as before, even with these new guidelines - which will very likely be the case.
And the market hasn't been giving Waleed much credit lately. His buys are ignored and his words don’t move the needle, so even a new communication saying “guys, we’re good” might not be enough.
As for data, Q1-26 is already shaping up to be record-breaking, so that could help, but we're weeks away and we probably won’t be back above my W50 until then. More likely, we range lower for a bit, find a bottom, and then push higher once sentiment improves.
Worth noting that the entire healthcare sector got hit yesterday with companies like $LLY falling ~8% so it isn't only $TMDX.
Again, fundamentally, nothing has changed.
The thesis is as strong as yesterday, maybe stronger at lower valuationnow. We might just need to be a bit more patient than expected, time for the market to catch up, which isn't something I personally like to do.
But again, let's give it a few days and see what happens. $TMDX remains a very strong company with lots of potential.
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$TMDX Delivered 😏
• Sales $122M vs Est. $110M
• EPS $0.19 vs Est. $0.15
• Net Income $7M vs Est. $5M
• Gross Margins 59% vs Est. 58%
FY25 Guidance
• Sales $541M vs Est. $520M
$TMDX Achieved profitability
•Total revenue of $121.6 million in the fourth quarter of 2024, a 50% increase compared to the fourth quarter of 2023
•Total revenue of $441.5 million in the full year of 2024, an 83% increase compared to the full year 2023
•Generated net income of $6.9 million, or $0.19 per diluted share, in the fourth quarter of 2024
•Generated net income of $35.5 million, or $1.01 per diluted share, in the full year 2024
$NBIS just announced it's adding NVIDIA GB200 NVL72 and NVIDIA HGX™ B200 to its AI Cloud soon.
Clusters are being deployed in the data centers both in the United States and Finland.
According to UNOS, transplant volumes were strong in January which bodes well for $TMDX as we can see from the January flight tracker data (~720 flights which was a new monthly record for $TMDX).
$TMDX earnings in a couple weeks should be fun, I'm expecting a Q4 beat and full year guidance of 25-30%
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