Vertex Pharmaceuticals Earnings Cheat Sheet: Streak of Three Straight Losses Snapped

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reversed to a profit in the third quarter, beating Wall Street estimates. Vertex Pharmaceuticals is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases.

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Vertex Pharmaceuticals Incorporated Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $221.1 million ($1.02 per diluted share) in the quarter. The drug manufacturer had a net loss of $209 million or a loss of $1.04 per share in the year earlier quarter.

Revenue: Rose to $659.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VRTX reported adjusted net income of 70 cents per share. By that measure, the company beat the mean estimate of 15 cents per share. It beat the average revenue estimate of $343.4 million.

Quoting Management: “Our continued progress with the launch of INCIVEK together with our global approval applications for KALYDECO highlight Vertex’s strengths in moving innovative science from the lab to people with serious diseases,” said Matthew Emmens, Chairman, President and Chief Executive Officer of Vertex. “As we enter 2012, we expect to have more than a dozen ongoing clinical trials across our broad and diverse pipeline, which we believe may lead to additional new medicines to support our future growth.”

Key Stats:

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $174.1 million in the second quarter, a loss of $176.1 million in the first quarter and a loss of $180.4 million in the fourth of the last fiscal year.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with a loss of -82 cents versus a mean estimate of a loss of 93 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 52 cents a share to 67 cents over the last sixty days. For the fiscal year, the average estimate has moved from a loss of $1.60 a share to a loss of 86 cents over the last ninety days.

Competitors to Watch: Merck & Co., Inc. (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), GlaxoSmithKline plc (NYSE:GSK), InterMune, Inc. (NASDAQ:ITMN), Gilead Sciences, Inc. (NASDAQ:GILD), Pharmasset, Inc. (NASDAQ:VRUS), Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), Bristol Myers Squibb Co. (NYSE:BMY), Abbott Laboratories (NYSE:ABT), and Human Genome Sciences (NASDAQ:HGSI).

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(Source: Xignite Financials)