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Vertex (VRTX) to Report Q3 Earnings: What's in the Cards?
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Vertex Pharmaceuticals Incorporated (VRTX - Free Report) will report third-quarter 2022 results on Oct 27, after the market closes. In the last reported quarter, VRTX delivered a positive earnings surprise of 3.45%.
This large-cap biotech’s performance has been pretty impressive, with its earnings beating estimates in three of the trailing four quarters but missing the mark in one. VRTX has a trailing four-quarter earnings surprise of 4.52%, on average.
Vertex Pharmaceuticals Incorporated Price and Consensus
In the year so far, shares of Vertex have risen 41.4% against the industry’s 26.2% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the quarter to be reported.
Factors to Consider
Vertex’s revenue growth in third-quarter 2022 is likely to have been driven by a rapid uptake of its newest cystic fibrosis (CF) medicine Trikafta/Kaftrio (Trikafta’s brand name in Europe). The Zacks Consensus Estimate for Trikafta sales is pegged at $1.93 billion.
Sales for Trikafta in the United States are likely to have been driven by increased drug adoption among pediatric patients (6-11 years of age) in the to-be-reported quarter. Continued uptake of Kaftrio in Europe and a label expansionapproval for pediatric patients might have driven the product’s international revenues.
Higher sales of Trikafta are likely to have caused sales erosion of Vertex’s other CF drugs and existing combinations, namely Kalydeco and Symdeko/Symkevi. We expect Orkambi sales to rise after the FDA approvedthe expanded use of the drug in children aged 12 months to less than 24 months in September 2022.
Investors will also expect an update on Vertex’s non-CF pipeline during the third-quarter conference call.
As part of its collaboration with CRISPR Therapeutics (CRSP - Free Report) , Vertex is developing exa-cel (formerly CTX001), an investigational ex-vivo CRISPR gene-edited therapy for two indications, namely sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT).Vertex expects exa-cel to be its next commercial launch.
Last month, Vertex and partner CRISPR Therapeutics announced that they had secured the FDA’s permission to initiate a rolling biologics license application (BLA) submission for exa-cel in both SCD and TDT indications. Based on discussions with regulatory authroities, CRISPR Therapeutics and Vertex will begin rolling review this November and intends to complete the same by the end of first-quarter 2023.
This July, Vertex announced its plans to advance VX-548, its non-opioid NaV1.8 inhibitorinto pivotal phase III development for acute pain. The study is expected to start by year-end.
In July, Vertex also announced that the FDA lifted the clinical hold placed on the phase I/II study, evaluating its investigational stem cell-based therapy VX-880 for type I diabetes (T1D). To further accelerate the development of VX-880, Vertex announced plans to acquire ViaCyte, its collaboration partner for VX-880, for $320 million in cash.The deal is expected to be completed later this year, subject to certain customary closing conditions.
Earnings Whispers
Our proven model does not predict an earnings beat for Vertex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Vertex has an Earnings ESP of -0.52% as the Most Accurate Estimate of $3.66 per share is lower than the Zacks Consensus Estimate of $3.68.
Zacks Rank: Vertex has a Zacks Rank #3, currently.
Stocks to Consider
Here are a few stocks worth considering from the overall healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
ADC Therapeutics’ performance has been pretty encouraging to date, with its earnings exceeding expectations in each of the trailing four quarters, the average being 42.74%. In the last reported quarter, ADC Therapeutics’ earnings beat estimates by 24.0%. Shares of ADC Therapeutics have plunged 77.5% this year so far.
Eli Lilly (LLY - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #3.
Lilly’s stock has risen 23.4% this year so far. Lilly missed earnings estimates in three of the last four quarters. Lilly has a trailing four-quarter negative earnings surprise of 5.11%, on average. Eli Lilly is scheduled to release its third-quarter 2022 results on Nov 1.
Image: Bigstock
Vertex (VRTX) to Report Q3 Earnings: What's in the Cards?
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) will report third-quarter 2022 results on Oct 27, after the market closes. In the last reported quarter, VRTX delivered a positive earnings surprise of 3.45%.
This large-cap biotech’s performance has been pretty impressive, with its earnings beating estimates in three of the trailing four quarters but missing the mark in one. VRTX has a trailing four-quarter earnings surprise of 4.52%, on average.
Vertex Pharmaceuticals Incorporated Price and Consensus
Vertex Pharmaceuticals Incorporated price-consensus-chart | Vertex Pharmaceuticals Incorporated Quote
In the year so far, shares of Vertex have risen 41.4% against the industry’s 26.2% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the quarter to be reported.
Factors to Consider
Vertex’s revenue growth in third-quarter 2022 is likely to have been driven by a rapid uptake of its newest cystic fibrosis (CF) medicine Trikafta/Kaftrio (Trikafta’s brand name in Europe). The Zacks Consensus Estimate for Trikafta sales is pegged at $1.93 billion.
Sales for Trikafta in the United States are likely to have been driven by increased drug adoption among pediatric patients (6-11 years of age) in the to-be-reported quarter. Continued uptake of Kaftrio in Europe and a label expansionapproval for pediatric patients might have driven the product’s international revenues.
Higher sales of Trikafta are likely to have caused sales erosion of Vertex’s other CF drugs and existing combinations, namely Kalydeco and Symdeko/Symkevi. We expect Orkambi sales to rise after the FDA approvedthe expanded use of the drug in children aged 12 months to less than 24 months in September 2022.
Investors will also expect an update on Vertex’s non-CF pipeline during the third-quarter conference call.
As part of its collaboration with CRISPR Therapeutics (CRSP - Free Report) , Vertex is developing exa-cel (formerly CTX001), an investigational ex-vivo CRISPR gene-edited therapy for two indications, namely sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT).Vertex expects exa-cel to be its next commercial launch.
Last month, Vertex and partner CRISPR Therapeutics announced that they had secured the FDA’s permission to initiate a rolling biologics license application (BLA) submission for exa-cel in both SCD and TDT indications. Based on discussions with regulatory authroities, CRISPR Therapeutics and Vertex will begin rolling review this November and intends to complete the same by the end of first-quarter 2023.
This July, Vertex announced its plans to advance VX-548, its non-opioid NaV1.8 inhibitorinto pivotal phase III development for acute pain. The study is expected to start by year-end.
In July, Vertex also announced that the FDA lifted the clinical hold placed on the phase I/II study, evaluating its investigational stem cell-based therapy VX-880 for type I diabetes (T1D). To further accelerate the development of VX-880, Vertex announced plans to acquire ViaCyte, its collaboration partner for VX-880, for $320 million in cash.The deal is expected to be completed later this year, subject to certain customary closing conditions.
Earnings Whispers
Our proven model does not predict an earnings beat for Vertex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Vertex has an Earnings ESP of -0.52% as the Most Accurate Estimate of $3.66 per share is lower than the Zacks Consensus Estimate of $3.68.
Zacks Rank: Vertex has a Zacks Rank #3, currently.
Stocks to Consider
Here are a few stocks worth considering from the overall healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
ADC Therapeutics (ADCT - Free Report) has an Earnings ESP of +66.80% and a Zacks Rank of 1. You can the complete list of today’s Zacks #1 Rank stocks here.
ADC Therapeutics’ performance has been pretty encouraging to date, with its earnings exceeding expectations in each of the trailing four quarters, the average being 42.74%. In the last reported quarter, ADC Therapeutics’ earnings beat estimates by 24.0%. Shares of ADC Therapeutics have plunged 77.5% this year so far.
Eli Lilly (LLY - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #3.
Lilly’s stock has risen 23.4% this year so far. Lilly missed earnings estimates in three of the last four quarters. Lilly has a trailing four-quarter negative earnings surprise of 5.11%, on average. Eli Lilly is scheduled to release its third-quarter 2022 results on Nov 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.