Vertex Pharmaceuticals Earnings: Revenue EXPLODES Higher

Helped by revenue growth, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) narrowed its loss in the second quarter. 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

Results: Loss narrowed to $64.9 million (loss of 31 cents per diluted share) from $174.1 million (loss of 85 cents per share) in the same quarter a year earlier.

Revenue: Rose more than threefold to $418.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vertex Pharmaceuticals Incorporated fell short of the mean analyst estimate of 63 cents per share. It fell short of the average revenue estimate of $480.8 million.

Quoting Management: “During the first half of the year, Vertex delivered several important advancements across our broad pipeline. In cystic fibrosis, we obtained U.S. and E.U. approval of KALYDECO earlier than anticipated, and we announced promising data for a combination of VX-809 and KALYDECO that accelerated our plans to begin a pivotal program early next year in people with the most common type of cystic fibrosis. We also announced today the first results for our nucleotide analogue ALS-2200, which enhance our portfolio of potential hepatitis C medicines and provide flexibility in the future development of multiple all-oral treatments for this disease,” said Jeffrey Leiden, M.D., Ph.D., Chair, President and Chief Executive Officer of Vertex.

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 890.6%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 2670.3% from the year earlier quarter.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $91.6 million in the first quarter, a profit of $158.6 million in the fourth quarter of the last fiscal year and $221.1 million in the third of the last fiscal year.

The company has fallen short of estimates for two consecutive quarters. In the first quarter, it missed expectations by 15 cents with net income of 41 cents versus a mean estimate of net income of 56 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 76 cents a share to 69 cents over the last ninety days. The average estimate for the fiscal year is $2.43 per share, down from $2.80 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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