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Valued at a market cap of $117.7 billion, Vertex Pharmaceuticals Incorporated (VRTX) is a biotechnology company that discovers, develops, and commercializes innovative therapies for severe diseases. While the Boston, Massachusetts-based company is best known for its groundbreaking treatments for cystic fibrosis, it is also advancing a robust pipeline targeting conditions such as sickle cell disease, beta thalassemia, type 1 diabetes, alpha-1 antitrypsin deficiency, and muscular dystrophies. It is scheduled to announce its fiscal Q2 earnings for 2025 after the market closes on Monday, Aug. 4.
Before this event, analysts project this healthcare giant to report a profit of $3.74 per share, up 128.2% from a loss of $13.27 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in two of the last four quarters, while missing on two other occasions. Its earnings of $3.55 per share in the previous quarter fell short of the consensus estimates by 3.8%.
For the full year, analysts expect VRTX to report EPS of $15.67, up significantly from a loss of $1.35 per share in fiscal 2024. Its EPS is expected to further grow 12.4% year-over-year to $17.61 in fiscal 2026.
VRTX has lagged behind the S&P 500 Index's ($SPX) 14.5% uptick over the past 52 weeks, with its shares down 6.7% over the same time frame. However, it has outpaced the Health Care Select Sector SPDR Fund’s (XLV) 11.4% drop over the same period.
On May 5, VRTX delivered weaker-than-expected Q1 results, prompting its share price to tumble 10% in the following trading session. The company’s revenue grew 3% year-over-year to $2.8 billion, but missed the consensus estimates by 1.8% due to a decline in revenue from its international markets, primarily driven by headwind in Russia, where Vertex is experiencing a violation of its intellectual property rights. Moreover, due to higher operating expenses, its adjusted EPS of $4.06 fell 14.7% from the year-ago quarter, falling short of analyst estimates by 3.8%.
Wall Street analysts are moderately optimistic about VRTX’s stock, with an overall "Moderate Buy" rating. Among 32 analysts covering the stock, 16 recommend "Strong Buy," one indicates a "Moderate Buy,” 14 suggest "Hold,” and one advises a “Strong Sell” rating. The mean price target for VRTX is $514.73, implying a 12.3% potential upside from the current levels.
