Vertex (VRTX) Q3 Earnings: Analyzing Key Metrics Against Estimates

Vertex Pharmaceuticals (VRTX) announced its third-quarter earnings for the period ending September 2024, revealing a revenue of $2.77 billion. This figure marks an 11.6% increase compared to the same quarter last year. The earnings per share (EPS) for the quarter reached $4.38, up from $4.08 a year prior.

The reported revenue exceeded the Zacks Consensus Estimate of $2.67 billion, resulting in a positive surprise of 3.62%. Additionally, the estimated EPS was $4.13, and Vertex's actual EPS also surpassed this estimate, yielding an EPS surprise of 6.05%.

Investors often focus on the headline numbers such as revenue and earnings, but analyzing certain key metrics can offer deeper insights into the company's underlying performance. These metrics can significantly affect both the top-line and bottom-line results. By comparing these figures to past performance and Wall Street estimates, investors can gain a clearer perspective on future stock performance.

Here’s a closer look at how Vertex performed in the recently reported quarter according to the key metrics closely monitored by Wall Street analysts:

• Geographic Revenues - United States: Vertex generated $1.71 billion, surpassing the average estimate of $1.64 billion from four analysts. This number reflects a 10.3% increase year-over-year.
• Geographic Revenues - Outside of the United States: This segment brought in $1.06 billion, slightly above the analyst estimate of $1.04 billion. This equates to a year-over-year increase of 13.9%.
• Revenues by Product - Other CF Products: The revenue was reported at $186.90 million, exceeding the average estimate of $167.56 million from nine analysts.
• Revenues by Product - Trikafta/Kaftrio: This key product generated $2.59 billion, surpassing the forecasted $2.49 billion and reflecting a year-over-year growth of 13.7%.

In summary, Vertex shares have increased by 5.4% over the past month, while the S&P 500 composite index fell by 0.5% during the same period. Currently, Vertex holds a Zacks Rank of #3 (Hold), suggesting that its stock might perform in alignment with the broader market shortly.

Vertex, Earnings, Estimates