Earnings Outlook For Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ:VRTX) will release its quarterly earnings report on Monday, 2025-05-05. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Vertex Pharmaceuticals to report an earnings per share (EPS) of $4.31.
Anticipation surrounds Vertex Pharmaceuticals's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings Track Record
Last quarter the company missed EPS by $0.04, which was followed by a 3.14% drop in the share price the next day.
Here's a look at Vertex Pharmaceuticals's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 4.02 | 4.14 | 4.14 | 4.02 |
| EPS Actual | 3.98 | 4.38 | -12.83 | 4.76 |
| Price Change % | -3.0% | 6.0% | -2.0% | 2.0% |
Vertex Pharmaceuticals Share Price Analysis
Shares of Vertex Pharmaceuticals were trading at $498.86 as of May 01. Over the last 52-week period, shares are up 24.51%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Observations about Vertex Pharmaceuticals
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Vertex Pharmaceuticals.
The consensus rating for Vertex Pharmaceuticals is Neutral, derived from 12 analyst ratings. An average one-year price target of $473.92 implies a potential 5.0% downside.
Comparing Ratings with Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Gilead Sciences, Amgen and Regeneron Pharmaceuticals, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Gilead Sciences, with an average 1-year price target of $118.81, suggesting a potential 76.18% downside.
- Analysts currently favor an Neutral trajectory for Amgen, with an average 1-year price target of $311.17, suggesting a potential 37.62% downside.
- Analysts currently favor an Buy trajectory for Regeneron Pharmaceuticals, with an average 1-year price target of $790.94, suggesting a potential 58.55% upside.
Insights: Peer Analysis
The peer analysis summary outlines pivotal metrics for Gilead Sciences, Amgen and Regeneron Pharmaceuticals, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Vertex Pharmaceuticals | Neutral | 15.66% | $2.49B | 5.70% |
| Gilead Sciences | Outperform | -11.92% | $5.99B | 6.85% |
| Amgen | Neutral | 10.86% | $5.97B | 9.36% |
| Regeneron Pharmaceuticals | Buy | -3.70% | $2.56B | 2.75% |
Key Takeaway:
Vertex Pharmaceuticals ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.
Discovering Vertex Pharmaceuticals: A Closer Look
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease. Additionally, Vertex is evaluating small-molecule inhibitors targeting acute and chronic pain using nonopioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
Breaking Down Vertex Pharmaceuticals's Financial Performance
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: Vertex Pharmaceuticals's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 15.66%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Net Margin: Vertex Pharmaceuticals's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 31.35%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Vertex Pharmaceuticals's ROE stands out, surpassing industry averages. With an impressive ROE of 5.7%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Vertex Pharmaceuticals's ROA stands out, surpassing industry averages. With an impressive ROA of 4.08%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Vertex Pharmaceuticals's debt-to-equity ratio is below the industry average at 0.11, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Vertex Pharmaceuticals visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.