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Vertex (VRTX) to Report Q2 Earnings: What's in the Cards?
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Vertex Pharmaceuticals Incorporated (VRTX - Free Report) will report second-quarter 2023 results on Aug 1, after the market closes. In the last reported quarter, the company delivered a positive earnings surprise of 3.39%.
Factors to Consider
Vertex’s revenue growth in second-quarter 2023 is likely to have been driven by the rapid uptake of its blockbuster cystic fibrosis (“CF”) medicine Trikafta/Kaftrio (Trikafta’s brand name in Europe).
This April, the FDA approved the expanded use of Trikafta in children with CF aged between two and five years. This label expansion is likely to have contributed to the drug’s sales growth in the to-be-reported quarter. Sales are also likely to have been driven by the drug’s strong uptake in international markets and increased drug adoption in the United States in the 6-11 age group. The Zacks Consensus Estimate and our model estimates for Trikafta sales are pegged at $2.17 billion and $2.15 billion, respectively.
Higher Trikafta sales are likely to have caused sales erosion of Vertex’s other CF drugs and existing combinations, namely Kalydeco, Orkambi and Symdeko/Symkevi.
Investors will also expect an update on Vertex’s non-CF pipeline during first-quarter conference call.
As part of its collaboration with CRISPR Therapeutics (CRSP - Free Report) , Vertex developed exagamglogene autotemcel (“exa-cel”), an ex-vivo CRISPR gene-edited therapy for two indications, namely sickle cell disease (“SCD”) and transfusion-dependent beta-thalassemia (“TDT”).
This June, Vertex and CRISPR Therapeutics announced that the FDA accepted the biologics license application (BLA) submissions seeking approval for exa-cel in SCD and TDT indications and a final decision is expected by Dec 8, 2023 and Mar 30, 2024, respectively. CRISPR Therapeutics and Vertex have filed similar regulatory submissions for exa-cel in Europe, which were validated this January.
Last month, Vertex presented positive data on all participants dosed in parts A and B of an ongoing phase I/II study evaluating VX-880 in T1D patients. All six patients treated with VX-880 produced endogenous insulin (C-peptide) and had improved glycemic control while reducing or eliminating insulin use. In fact, two study participants with at least one year follow-up met the criteria for the study’s primary endpoint. Based on these results, Vertex decided to advance the study to part C with concurrent dosing.
Investors will also likely be on the lookout for pipeline updates on Vertex’s other pipeline candidates targeting acute pain, APOL1-mediated kidney diseases and alpha-1 antitrypsin deficiency.
Earnings Surprise History
The large-cap biotech’s performance has been impressive, with its earnings beating estimates in each of the trailing four quarters. Vertex has a trailing four-quarter earnings surprise of 5.51%, on average.
Vertex Pharmaceuticals Incorporated Price and EPS Surprise
In the year so far, shares of Vertex have risen 21.9% against the industry’s 11.3% decline.
Image Source: Zacks Investment Research
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 -2.12% as the Most Accurate Estimate of $3.77 per share is lower than the Zacks Consensus Estimate of $3.85.
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.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3.
AstraZeneca’s stock has risen 2.3% so far this year. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.11%, on average. AstraZeneca is scheduled to release its second-quarter results on Jul 28.
Novo Nordisk (NVO - Free Report) has an Earnings ESP of +4.63% and a Zacks Rank #3.
Novo Nordisk’s stock has risen 17.0% so far this year. NVO topped earnings estimates in two of the last four quarters and has a four-quarter earnings surprise of 0.35%, on average. Novo Nordisk is scheduled to release its second-quarter results on Aug 10.
Image: Bigstock
Vertex (VRTX) to Report Q2 Earnings: What's in the Cards?
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) will report second-quarter 2023 results on Aug 1, after the market closes. In the last reported quarter, the company delivered a positive earnings surprise of 3.39%.
Factors to Consider
Vertex’s revenue growth in second-quarter 2023 is likely to have been driven by the rapid uptake of its blockbuster cystic fibrosis (“CF”) medicine Trikafta/Kaftrio (Trikafta’s brand name in Europe).
This April, the FDA approved the expanded use of Trikafta in children with CF aged between two and five years. This label expansion is likely to have contributed to the drug’s sales growth in the to-be-reported quarter. Sales are also likely to have been driven by the drug’s strong uptake in international markets and increased drug adoption in the United States in the 6-11 age group. The Zacks Consensus Estimate and our model estimates for Trikafta sales are pegged at $2.17 billion and $2.15 billion, respectively.
Higher Trikafta sales are likely to have caused sales erosion of Vertex’s other CF drugs and existing combinations, namely Kalydeco, Orkambi and Symdeko/Symkevi.
Investors will also expect an update on Vertex’s non-CF pipeline during first-quarter conference call.
As part of its collaboration with CRISPR Therapeutics (CRSP - Free Report) , Vertex developed exagamglogene autotemcel (“exa-cel”), an ex-vivo CRISPR gene-edited therapy for two indications, namely sickle cell disease (“SCD”) and transfusion-dependent beta-thalassemia (“TDT”).
This June, Vertex and CRISPR Therapeutics announced that the FDA accepted the biologics license application (BLA) submissions seeking approval for exa-cel in SCD and TDT indications and a final decision is expected by Dec 8, 2023 and Mar 30, 2024, respectively. CRISPR Therapeutics and Vertex have filed similar regulatory submissions for exa-cel in Europe, which were validated this January.
Last month, Vertex presented positive data on all participants dosed in parts A and B of an ongoing phase I/II study evaluating VX-880 in T1D patients. All six patients treated with VX-880 produced endogenous insulin (C-peptide) and had improved glycemic control while reducing or eliminating insulin use. In fact, two study participants with at least one year follow-up met the criteria for the study’s primary endpoint. Based on these results, Vertex decided to advance the study to part C with concurrent dosing.
Investors will also likely be on the lookout for pipeline updates on Vertex’s other pipeline candidates targeting acute pain, APOL1-mediated kidney diseases and alpha-1 antitrypsin deficiency.
Earnings Surprise History
The large-cap biotech’s performance has been impressive, with its earnings beating estimates in each of the trailing four quarters. Vertex has a trailing four-quarter earnings surprise of 5.51%, on average.
Vertex Pharmaceuticals Incorporated Price and EPS Surprise
Vertex Pharmaceuticals Incorporated price-eps-surprise | Vertex Pharmaceuticals Incorporated Quote
In the year so far, shares of Vertex have risen 21.9% against the industry’s 11.3% decline.
Image Source: Zacks Investment Research
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 -2.12% as the Most Accurate Estimate of $3.77 per share is lower than the Zacks Consensus Estimate of $3.85.
Zacks Rank: Vertex has a Zacks Rank #2, currently. You can the complete list of today’s Zacks #1 Rank stocks here.
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.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3.
AstraZeneca’s stock has risen 2.3% so far this year. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.11%, on average. AstraZeneca is scheduled to release its second-quarter results on Jul 28.
Novo Nordisk (NVO - Free Report) has an Earnings ESP of +4.63% and a Zacks Rank #3.
Novo Nordisk’s stock has risen 17.0% so far this year. NVO topped earnings estimates in two of the last four quarters and has a four-quarter earnings surprise of 0.35%, on average. Novo Nordisk is scheduled to release its second-quarter results on Aug 10.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.