Examining the Future: Vertex Pharmaceuticals's Earnings Outlook
Vertex Pharmaceuticals (NASDAQ:VRTX) is gearing up to announce its quarterly earnings on Monday, 2025-08-04. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Vertex Pharmaceuticals will report an earnings per share (EPS) of $4.04.
The announcement from Vertex Pharmaceuticals is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Historical Earnings Performance
Last quarter the company missed EPS by $0.23, which was followed by a 10.03% drop in the share price the next day.
Here's a look at Vertex Pharmaceuticals's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 4.29 | 4.02 | 4.14 | 4.14 |
| EPS Actual | 4.06 | 3.98 | 4.38 | -12.83 |
| Price Change % | -10.0% | -3.0% | 6.0% | -2.0% |
Tracking Vertex Pharmaceuticals's Stock Performance
Shares of Vertex Pharmaceuticals were trading at $456.87 as of July 31. Over the last 52-week period, shares are down 3.27%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Analyst Observations about Vertex Pharmaceuticals
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Vertex Pharmaceuticals.
With 10 analyst ratings, Vertex Pharmaceuticals has a consensus rating of Neutral. The average one-year price target is $482.9, indicating a potential 5.7% upside.
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 Buy trajectory for Gilead Sciences, with an average 1-year price target of $125.0, suggesting a potential 72.64% downside.
- Analysts currently favor an Neutral trajectory for Amgen, with an average 1-year price target of $302.62, suggesting a potential 33.76% downside.
- Analysts currently favor an Outperform trajectory for Regeneron Pharmaceuticals, with an average 1-year price target of $727.83, suggesting a potential 59.31% upside.
Insights: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Gilead Sciences, Amgen and Regeneron Pharmaceuticals, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Vertex Pharmaceuticals | Neutral | 2.96% | $2.41B | 3.93% |
| Gilead Sciences | Buy | -0.28% | $5.13B | 6.83% |
| Amgen | Neutral | 9.43% | $5.18B | 28.63% |
| Regeneron Pharmaceuticals | Outperform | -3.70% | $2.56B | 2.75% |
Key Takeaway:
Vertex Pharmaceuticals is positioned in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth. In terms of gross profit, it is at the top. For return on equity, it is positioned in the middle compared to its peers.
About Vertex Pharmaceuticals
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, and Alyftrek 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, and Journavx, a non-opioid pain medication approved for the treatment of moderate-to-severe acute pain in adults. Additionally, Vertex is evaluating small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
Key Indicators: Vertex Pharmaceuticals's Financial Health
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: Over the 3 months period, Vertex Pharmaceuticals showcased positive performance, achieving a revenue growth rate of 2.96% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: Vertex Pharmaceuticals's net margin is impressive, surpassing industry averages. With a net margin of 23.33%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Vertex Pharmaceuticals's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.93%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.85%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 0.1, Vertex Pharmaceuticals adopts a prudent financial strategy, indicating a balanced approach to debt management.
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.
