Biotech company Vertex Pharmaceuticals (NASDAQ: VRTX) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.
Vertex Pharmaceuticals beat analysts’ revenue expectations by 4.9% last quarter, reporting revenues of $2.91 billion, up 15.7% year on year. It was a strong quarter for the company, with full-year revenue guidance meeting analysts’ expectations.
Is Vertex Pharmaceuticals a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vertex Pharmaceuticals’s revenue to grow 5.4% year on year to $2.83 billion, slowing from the 13.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.29 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vertex Pharmaceuticals has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Vertex Pharmaceuticals’s peers in the therapeutics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. BioMarin Pharmaceutical delivered year-on-year revenue growth of 14.8%, beating analysts’ expectations by 1%, and United Therapeutics reported revenues up 17.2%, topping estimates by 5.6%. BioMarin Pharmaceutical traded down 1.3% following the results while United Therapeutics was also down 2.1%.
Read our full analysis of BioMarin Pharmaceutical’s results here and United Therapeutics’s results here.
There has been positive sentiment among investors in the therapeutics segment, with share prices up 4.9% on average over the last month. Vertex Pharmaceuticals is up 5.8% during the same time and is heading into earnings with an average analyst price target of $500.32 (compared to the current share price of $501.90).
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