Biotech company Vertex Pharmaceuticals (NASDAQ: VRTX) will be announcing earnings results this Monday after market hours. Here’s what you need to know.
Vertex Pharmaceuticals beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $2.96 billion, up 12.1% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ revenue estimates but full-year revenue guidance meeting analysts’ expectations.
Is Vertex Pharmaceuticals a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Vertex Pharmaceuticals’s revenue to grow 10.5% year on year to $3.06 billion, slowing from the 11.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vertex Pharmaceuticals has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Vertex Pharmaceuticals’s peers in the therapeutics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gilead Sciences delivered year-on-year revenue growth of 3%, beating analysts’ expectations by 3.7%, and Biogen reported revenues up 2.8%, topping estimates by 8.2%. Gilead Sciences traded up 1.2% following the results while Biogen was also up 4.1%.
Read our full analysis of Gilead Sciences’s results here and Biogen’s results here.
Investors in the therapeutics segment have had steady hands going into earnings, with share prices flat over the last month. Vertex Pharmaceuticals is up 4.9% during the same time and is heading into earnings with an average analyst price target of $480.84 (compared to the current share price of $423.00).
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