/Vertex%20Pharmaceuticals%2C%20Inc_%20HQ%20in%20Boston-by%20Tada%20Images%20via%20Shuttershock.jpg)
Boston, Massachusetts-based Vertex Pharmaceuticals Incorporated (VRTX) develops and commercializes therapies for treating cystic fibrosis (CF). Valued at $127.97 billion by market cap, the company invests in scientific innovation to create transformative medicines for people with serious diseases. The biotechnology company is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Thursday, Aug. 1.
Ahead of the event, analysts expect VRTX to report a profit of $3.72 per share on a diluted basis, up 5.4% from $3.53 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion.
For the full year, analysts expect VRTX to report EPS of $15.16, up 9.9% from $13.80 in fiscal 2023.
VRTX stock has outperformed the S&P 500’s ($SPX) 17% gains on a YTD basis, with shares up 20.3% during this period. Similarly, it outshined the S&P 500 Healthcare Sector SPDR’s (XLV) 9.2% gains over the same time frame.
VRTX’s overall performance can be attributed to its impressive late-stage pipeline and recent clinical trial successes, which are expected to improve its lineup in a year or two. In cystic fibrosis (CF), the company announced that the U.S. FDA had accepted its New Drug Application for its once-daily vanzacaftor/tezacaftor/deutivacaftor triple combination therapy. The Vanza triple has the potential for enhanced patient benefit than Trikafta patients.
Moreover, there is promise around Casgevy’s prospects as the FDA expanded its usage to include patients with transfusion-dependent beta-thalassemia (TDT). Also, acquiring Alpine Immune Sciences gives access to povetacicept, a Phase 3-ready asset that could be used to treat several autoimmune-related kidney diseases.
On May 6, VRTX reported its Q1 results. Its adjusted EPS of $4.76 exceeded Wall Street expectations of $4.10. The company’s revenue was $2.69 billion, exceeding Wall Street forecasts of $2.56 billion. VRTX expects full-year revenue to be between $10.55 billion and $10.75 billion. VRTX shares closed up marginally on the day the results were released and have been on an uptrend since then.
Analysts’ consensus opinion on VRTX stock is bullish, with a “Moderate Buy” rating overall. Out of 30 analysts covering the stock, 20 advise a “Strong Buy” rating, eight give a “Hold” rating, and two recommend a “Strong Sell.” The average analyst price target for VRTX is $466.33, indicating a potential downside of 6.3% from the current levels.
On the date of publication, Dipanjan Banchur 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.
