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Vertex Pharmaceuticals Incorporated (VRTX), headquartered in Boston, Massachusetts, is a global leader in biotechnology and precision medicine. With a market cap of $106.1 billion, Vertex pioneers innovation by developing transformative therapies targeting serious diseases, including cystic fibrosis and genetic disorders. The company is set to release its Q4 earnings on Wednesday, Feb. 3.
Ahead of the event, analysts expect Vertex to report a profit of $3.41 per share on a diluted basis, down 4.5% from $3.57 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on two other occasions.
VRTX reported an adjusted EPS of $4.04 in the most recent quarter, missing the consensus estimates by 11.9%. Vertex Pharmaceuticals exceeded earnings expectations in the last quarter, driven by strong demand for its cystic fibrosis therapies and operational efficiency.
In fiscal 2024, analysts expect the company to report a loss of $1.90, down 113.8% from $13.80 in fiscal 2023. However, in fiscal 2025, losses are expected to rebound to a profit of $15.90, growing by 936.8%.
Vertex Pharmaceuticals’ shares have fallen 1.7% over the past 52 weeks, trailing the S&P 500 Index’s ($SPX) 24.2% gains and the modest gains of the Healthcare Select Sector SPDR Fund (XLV) during the same period.
Vertex Pharmaceuticals has lagged behind the broader market and peers, weighed down by weaker stock momentum and market sentiment toward the biotech sector. However, shares rose 5.7% following its strong Q3 earnings release on Nov. 4. The company reported revenue of $2.77 billion, up 11.7% year-over-year, exceeding Wall Street estimates of $2.67 billion. Additionally, Vertex raised its full-year product revenue guidance to a range of $10.8 billion to $10.9 billion.
Analysts’ consensus opinion on VRTX stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of 32 analysts covering the stock, 20 advise a “Strong Buy” rating, 10 give a “Hold” rating, and two recommend a “Strong Sell.”
The average analyst price target for VRTX is $501.18, indicating a potential upside of 21.6% from the current levels.
