Vertex Pharmaceuticals Incorporated Earnings: Swung to a Profit

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported its results for the fourth 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 for the Fourth Quarter

Results: Reported a profit of $158.6 million (74 cents per diluted share) in the quarter. Vertex Pharmaceuticals Incorporated had a net loss of $180.4 million or a loss 90 cents per share in the year earlier quarter.

Revenue: Rose 759.7% to $563.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Vertex Pharmaceuticals Incorporated reported adjusted net income of 86 cents per share. By that measure, the company beat the mean estimate of 82 cents per share. It beat the average revenue estimate of $527.4 million.

Quoting Management: “The successful launch of INCIVEK in hepatitis C and rapid approval of KALYDECO for people with a specific type of cystic fibrosis underscore our ability to discover and develop breakthrough new medicines and to bring them to patients,” said Jeffrey Leiden, M.D., Ph.D., President and Chief Executive Officer of Vertex. “We will continue to advance our pipeline of eight other potential medicines and expect to generate proof-of-concept data for many of these programs throughout 2012. With two approved medicines and a diverse pipeline, Vertex is well-positioned to become a global business focused on creating additional medicines for people with serious diseases.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 802.7%, with the biggest boost coming in the third quarter when revenue rose 2670.3% from the year earlier quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 38 cents in the third quarter and by 11 cents in the second quarter.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the first quarter of the next fiscal year is 91 cents per share, dropping from 95 cents a month ago. At 17 cents per share, the average estimate for the fiscal year has fallen from 33 cents ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com