What You Need to Know Ahead of Vertex Pharmaceuticals' Earnings Release

Boston, Massachusetts-based Vertex Pharmaceuticals Incorporated (VRTX) develops and commercializes therapies for treating cystic fibrosis (CF). Valued at $128.7 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 third-quarter earnings for 2024 after the market closes on Monday, Nov. 4.

Ahead of the event, analysts expect VRTX to report a profit of $3.61 per share on a diluted basis, down 1.6% from $3.67 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on other two occasions. 

For the current fiscal year, analysts expect VRTX to report a loss per share of $2.11, down 115.3% from $13.80 in fiscal 2023.

VRTX stock is up 22.6% in 2024, slightly outperforming the S&P 500’s ($SPX) 22.5% gains on a YTD basis. Similarly, it outshined the Healthcare Select Sector SPDR Fund’s (XLV) 11.7% gains over the same time frame.

Vertex Pharmaceuticals has outpaced the broader market this year due to its leadership in cystic fibrosis treatments and its groundbreaking advances in gene-editing therapies. Recent developments, including the historic approval of Casgevy, the first-ever CRISPR gene-editing therapy for sickle cell disease and transfusion-dependent beta thalassemia, have generated significant investor enthusiasm. 

On Aug. 1, VRTX surged 2% following its Q2 earnings release. While the company reported a loss of $3.59 billion, or $13.92 per share, wider than Wall Street’s expected loss of $11.50 per share, it still met revenue forecasts, delivering $2.65 billion. The company also raised its revenue guidance for the year to a range of $10.65 billion to $10.85 billion.

Analysts’ consensus opinion on VRTX stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 31 analysts covering the stock, 18 advise a “Strong Buy” rating, 11 give a “Hold” rating, and two recommend a “Strong Sell.” 

The average analyst price target for VRTX is $509.70, indicating a potential upside of 2.2% from the current levels. 

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On the date of publication, Kritika Sarmah 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.