Vertex Pharmaceuticals Incorporated Second Quarter Earnings Sneak Peek

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) will unveil its latest earnings on Monday, July 30, 2012. 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 profit of 62 cents per share, up from a loss of 82 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 65 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. For the year, analysts are projecting net income of $2.39 per share, a swing from net loss of 49 cents last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the first quarter, it reported profit of 41 cents per share versus a mean estimate of 56 cents. Two quarters ago, it reported net income of 75 cents per share.

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Wall St. Revenue Expectations: Analysts predict a rise of more than fourfold in revenue from the year-earlier quarter to $472.2 million.

A Look Back: In the first quarter, the company swung to a profit of $91.6 million (43 cents a share) from a loss of $176.1 million (87 cents) a year earlier, but missed analyst estimates. Revenue rose more than fivefold to $438.7 million from $73.7 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.71 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 3.39 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased more than twofold to $840.3 million while assets rose 7.9% to $1.44 billion.

Stock Price Performance: Between May 25, 2012 and July 24, 2012, the stock price had fallen $16.48 (-25.4%), from $64.85 to $48.37. The stock price saw one of its best stretches over the last year between May 17, 2012 and May 25, 2012, when shares rose for seven straight days, increasing 5.8% (+$3.58) over that span.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

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

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