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With a market cap of $122.6 billion, Vertex Pharmaceuticals Incorporated (VRTX) operates as a global biotechnology company that develops and commercializes therapies for treating cystic fibrosis (CF). The Boston, Massachusetts-based company is expected to release its Q1 2025 earnings after the market closes on Monday, May 5.
Ahead of this event, analysts expect VRTX to post adjusted earnings of $3.69 per share, down a staggering 14% from $4.29 per share reported in the same quarter last year. On a positive note, the company has surpassed Wall Street's bottom-line estimates in three of the past four quarters, but has missed the projections on one other occasion. In the previous quarter, its adjusted EPS of $3.54 surpassed the consensus estimates by 4.7%.
Meanwhile, for fiscal 2025, analysts expect Vertex Pharmaceuticals to report an adjusted EPS of $15.61, marking a significant improvement from the loss of $1.35 per share in fiscal 2024. Moreover, its earnings are expected to further grow 11.5% year-over-year to $17.41 per share in fiscal 2026.
VRTX stock has gained 22.6% over the past 52 weeks, significantly outperforming the S&P 500 Index’s ($SPX) 5.5% uptick and the Health Care Select Sector SPDR Fund’s (XLV) 3.1% decline during the same time frame.
Despite reporting better-than-expected financials, shares of Vertex Pharmaceuticals fell 3.1% in the trading session after it released its mixed Q4 2024 results on Feb. 10. Driven by the continued performance of TRIKAFTA/KAFTRIO, product revenue rose 16% year-over-year to $2.9 billion, surpassing the estimate of $2.8 billion. Meanwhile, the company's bottom-line also exceeded the consensus estimates by a notable margin.
Looking ahead to fiscal 2025, VRTX projects total revenue between $11.75 billion and $12.0 billion, supported by continued growth in CF, including the U.S. launch of ALYFTREK, broader adoption of CASGEVY across multiple regions, and initial contributions from JOURNAVX.
Furthermore, analysts' consensus view on VRTX stock is moderately optimistic, with a "Moderate Buy" rating overall. Out of 31 analysts covering the stock, opinions include 18 "Strong Buys," 12 "Holds," and one "Strong Sell.” Its mean price target of $506.85 suggests a modest 3.3% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
