Vertex Pharmaceuticals (VRTX) Q4 Earnings Report Preview: What To Look For

StockStory
09 Feb
Vertex Pharmaceuticals (VRTX) Q4 Earnings Report Preview: What To Look For

Biotech company Vertex Pharmaceuticals (NASDAQ:VRTX) will be reporting results tomorrow afternoon. Here’s what to look for.

Vertex Pharmaceuticals beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $2.77 billion, up 11.6% year on year. It was a strong quarter for the company, with full-year revenue guidance slightly topping 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 10.3% year on year to $2.78 billion, in line with the 9.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.02 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 three times over the last two years.

Looking at Vertex Pharmaceuticals’s peers in the biotechnology segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AbbVie delivered year-on-year revenue growth of 5.6%, beating analysts’ expectations by 1.9%, and Amgen reported revenues up 10.9%, topping estimates by 2.6%. AbbVie traded up 8.3% following the results while Amgen was also up 6.5%.

Read our full analysis of AbbVie’s results here and Amgen’s results here.

Investors in the biotechnology segment have had steady hands going into earnings, with share prices flat over the last month. Vertex Pharmaceuticals is up 13.5% during the same time and is heading into earnings with an average analyst price target of $490.59 (compared to the current share price of $469.32).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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