Vertex Pharmaceuticals (NYSE:VRTX) reported earnings per share of $3.60, exceeding the Zacks Consensus Estimate of $3.48. This compared to earnings per share of $3.11 a year ago. These values have been adjusted to account for non-recurring items. This quarterly report represents a 3.45%earnings surprise. This drugmaker was projected to report $3.60 per share a quarter ago but reported earnings of $3.52, a -2.22% surprise.
The company has outperformed consensus earnings per share projections three times in the last four quarters. Vertex (NYSE:VRTX), part of the Zacks Medical – Biomedical and Genetics business, reported $2.2 billion in revenue for the quarter ending June 2022, exceeding the Zacks Consensus Estimate by 3.02%. This compares to $1.79 billion in revenue the previous year. Over the last four quarters, Vertex has outperformed consensus revenue projections four times.
The stock’s immediate price movement based on recently revealed figures and future earnings forecasts will be largely determined by management’s remarks on the earnings call. Vertex (NYSE:VRTX) shares are up around 25.2%year to date, compared to a -12.8% loss in the S&P 500.
What’s Next for Vertex?
While Vertex has outperformed the market thus far this year, investors are wondering what’s next for the company.
There are no simple solutions to this critical question. Still, one dependable metric that can assist investors is the company’s profits outlook. This includes the current consensus earnings predictions for the next quarter(s) and how these expectations have evolved recently. According to empirical research, there is a high association between short-term stock fluctuations and changes in earnings estimate revisions. Investors can watch such changes on their own or use a tried-and-true grading tool like the Zacks Rank, which has a proven track record of capitalizing on earnings estimate modifications.
Vertex’s estimate revisions trended neutral ahead of this earnings release. While the degree and direction of estimate revisions may alter following the company’s recently issued earnings report, the stock currently has a Zacks Rank #3 (Hold). As a result, the stock is projected to perform by the market shortly. The complete list of today’s Zacks #1 Rank (Strong Buy) stocks can be found here. It will be interesting to see how predictions for the future quarters and fiscal year evolve in the coming days. The current consensus EPS forecast for the approaching quarter is $3.59 on $2.16 billion in revenue and $14.06 on $8.58 billion in revenue for the current fiscal year.
Investors should keep in mind that the forecast for the industry might significantly impact the company’s performance. According to the Zacks Industry Rank, Medical – Biomedical and Genetics are presently ranked in the top 33% of the 250+ Zacks industries. According to our data, the top half of the Zacks-ranked industries beat the bottom half by a ratio of over two to one.
Prometheus Biosciences, Inc. (RXDX), another stock in the same business, is yet to report results for the quarter ended June 2022. This firm is predicted to announce a quarterly loss of $0.92 per share in its upcoming report, representing a -87.8% year-over-year decline. Over the previous 30 days, the consensus EPS estimate for the quarter has stayed constant. Revenues for Prometheus Biosciences, Inc. are predicted to be $0.7 million, up 112.1% from the previous quarter.
Featured Image: Megapixl © Prometeus
