Vertex Pharmaceuticals Inc Fourth Quarter Earnings Sneak Peek

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Vertex Pharmaceuticals is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases.

Vertex Pharmaceuticals Incorporated Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 13 cents per share, up from net income of 75 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 12 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 10 cents during the last month.

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A Look Back: In the third quarter, the company swung to a loss of $57.5 million (27 cents a share) from a profit of $221.1 million ($1.02) a year earlier, missing analyst expectations. Revenue fell 49% to $336 million from $659.2 million.

Here’s how Vertex Pharmaceuticals Inc traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

vrtx

Wall St. Revenue Expectations: On average, analysts predict $318.5 million in revenue this quarter, a decline of 43.5% from the year-ago quarter. Analysts are forecasting total revenue of $1.51 billion for the year, a rise of 7.1% from last year’s revenue of $1.41 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.55 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.66 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.7% to $1.05 billion while assets rose 2.6% to $1.63 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 759.7% in the fourth quarter of the last fiscal year, more than fivefold in the first quarter and more than threefoldin the second quarter before dropping in the third quarter.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

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