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Vertex (VRTX) to Report Q3 Earnings: What's in the Cards?
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Vertex Pharmaceuticals Incorporated (VRTX - Free Report) is anticipated to beat estimates when it reports its third-quarter 2023 results on Nov 6, after market close.
Factors to Consider
Vertex markets four cystic fibrosis (CF) products — Trikafta/Kaftrio, Symdeko (marketed as Symkevi in Europe), Orkambi and Kalydeco.
The company’s revenue growth in third-quarter 2023 is likely to have been driven by the rapid uptake of its blockbuster CF medicine, Trikafta/Kaftrio (Trikafta’s brand name in Europe). In the last reported quarter, international sales and expanded use in children (aged between two and five years) with CF in the United States drove up sales of the drug. This trend is likely to have continued in the to-be-reported quarter as well. The Zacks Consensus Estimate for Trikafta/Kaftrio sales is currently pegged at $2.26 million.
However, higher Trikafta sales are likely to have caused sales erosion of Vertex’s other CF drugs and existing combinations.
Investors are likely to witness an update on Vertex’s non-CF pipeline during the third-quarter conference call.
As part of its collaboration with CRISPR Therapeutics (CRSP - Free Report) , Vertex has developed exagamglogene autotemcel (exa-cel), an ex-vivo CRISPR gene-edited therapy for two indications, namely sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT).
Earlier this year, Vertex and CRISPR Therapeutics announced that the FDA accepted the biologics license application submissions seeking approval for exa-cel in SCD and TDT indications and a final decision is expected by Dec 8, 2023 and Mar 30, 2024, respectively. CRSP and VRTX have filed similar regulatory submissions for exa-cel in Europe, which were validated this January.
A potential FDA nod to exa-cel will also make it Vertex’s first marketed product approved in a non-CF indication. Vertex expects exa-cel to be its next commercial launch.
VRTX is also developing treatments for acute and neuropathic pain, APOL1-mediated kidney disease, type I diabetes and alpha-1 antitrypsin deficiency. The company also has earlier-stage programs in diseases, such as muscular dystrophies. Updates regarding the same are also expected in the upcoming earnings call.
Earnings Surprise History
The company has an impeccable earnings surprise history so far, beating estimates in each of the trailing four quarters. During the same time frame, Vertex has reported an earnings surprise of 4.91%, on average.
Year to date, shares of Vertex have risen 23% against the industry’s 25.4% decline.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for Vertex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Vertex has an Earnings ESP of +2.22% as the Most Accurate Estimate of $4.00 per share is higher than the Zacks Consensus Estimate of $3.91.
Here are some other stocks in the same industry that too have the right combination of elements to beat on earnings this time around:
bluebird bio (BLUE - Free Report) has an Earnings ESP of +19.13% and a Zacks Rank #3 at present.
Shares of bluebird have declined 60.6% year to date. It beat earnings estimates in each of the last four quarters. BLUE has an earnings surprise of 89.60%, on average.
ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2 at present.
ACADIA’s stock has gained 36.7% year to date. It beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. ACAD has an earnings surprise of 20.33%, on average.
Image: Bigstock
Vertex (VRTX) to Report Q3 Earnings: What's in the Cards?
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) is anticipated to beat estimates when it reports its third-quarter 2023 results on Nov 6, after market close.
Factors to Consider
Vertex markets four cystic fibrosis (CF) products — Trikafta/Kaftrio, Symdeko (marketed as Symkevi in Europe), Orkambi and Kalydeco.
The company’s revenue growth in third-quarter 2023 is likely to have been driven by the rapid uptake of its blockbuster CF medicine, Trikafta/Kaftrio (Trikafta’s brand name in Europe). In the last reported quarter, international sales and expanded use in children (aged between two and five years) with CF in the United States drove up sales of the drug. This trend is likely to have continued in the to-be-reported quarter as well. The Zacks Consensus Estimate for Trikafta/Kaftrio sales is currently pegged at $2.26 million.
However, higher Trikafta sales are likely to have caused sales erosion of Vertex’s other CF drugs and existing combinations.
Investors are likely to witness an update on Vertex’s non-CF pipeline during the third-quarter conference call.
As part of its collaboration with CRISPR Therapeutics (CRSP - Free Report) , Vertex has developed exagamglogene autotemcel (exa-cel), an ex-vivo CRISPR gene-edited therapy for two indications, namely sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT).
Earlier this year, Vertex and CRISPR Therapeutics announced that the FDA accepted the biologics license application submissions seeking approval for exa-cel in SCD and TDT indications and a final decision is expected by Dec 8, 2023 and Mar 30, 2024, respectively. CRSP and VRTX have filed similar regulatory submissions for exa-cel in Europe, which were validated this January.
A potential FDA nod to exa-cel will also make it Vertex’s first marketed product approved in a non-CF indication. Vertex expects exa-cel to be its next commercial launch.
VRTX is also developing treatments for acute and neuropathic pain, APOL1-mediated kidney disease, type I diabetes and alpha-1 antitrypsin deficiency. The company also has earlier-stage programs in diseases, such as muscular dystrophies. Updates regarding the same are also expected in the upcoming earnings call.
Earnings Surprise History
The company has an impeccable earnings surprise history so far, beating estimates in each of the trailing four quarters. During the same time frame, Vertex has reported an earnings surprise of 4.91%, on average.
Year to date, shares of Vertex have risen 23% against the industry’s 25.4% decline.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for Vertex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Vertex has an Earnings ESP of +2.22% as the Most Accurate Estimate of $4.00 per share is higher than the Zacks Consensus Estimate of $3.91.
Zacks Rank: Vertex currently has a Zacks Rank #3. You can the complete list of today’s Zacks #1 Rank stocks here.
Vertex Pharmaceuticals Incorporated Price and Consensus
Vertex Pharmaceuticals Incorporated price-consensus-chart | Vertex Pharmaceuticals Incorporated Quote
Other Stocks to Consider
Here are some other stocks in the same industry that too have the right combination of elements to beat on earnings this time around:
bluebird bio (BLUE - Free Report) has an Earnings ESP of +19.13% and a Zacks Rank #3 at present.
Shares of bluebird have declined 60.6% year to date. It beat earnings estimates in each of the last four quarters. BLUE has an earnings surprise of 89.60%, on average.
ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2 at present.
ACADIA’s stock has gained 36.7% year to date. It beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. ACAD has an earnings surprise of 20.33%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.