Earnings Previews: TMDX, PFE, and GOOG
We're hitting on the first three companies in our portfolio that are reporting this week.
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We've got a big week of earnings coming up with nine of our long positions reporting. We are going to provide earnings previews for the first three (TMDX, PFE, and GOOG) in this email covering (1) key metrics we're watching; (2) a bull case; (3) a bear case; (4) a discussion of potential wild cards; and (5) our big picture/long-term outlook. We'll shoot out earnings previews for the rest of the names reporting this week in subsequent updates.
Without further ado, let's get into it.
TransMedics Group (reporting today after the close)
- Key Metrics to Watch:
- Revenue Growth. TransMedics is a growth story, and given its relatively high valuation, the Street likely wants to see another top-line beat and guidance raise this quarter (although the pressure for that is lessened a bit as the stock has come down recently off its all-time highs that it put in this summer). TransMedics has rolled out a drumbeat of "beat & raises" since we've owned it and unfortunately, once the market gets used to that, simply meeting expectations isn't good enough anymore. The consensus estimate for this quarter, according to Yahoo! Finance, is $115 million which would represent 73% y/y growth. All indications seem to suggest that TMDX likely will beat and raise once again. That's not something we want to bet on, and we don't want to be too aggressive going into this earnings print.
