Earnings Preview: Vertex Pharmaceuticals

Vertex Pharmaceuticals (VRTX) is expected to report Q2 earnings after market close Thursday, July 31, with a conference call scheduled July 31 for 5:00 p.m. ET.

Guidance

Analysts are looking for a loss of (60c) on revenue of $68.72M. The consensus range is (81c) to (41c) for EPS, and revenue of $38.56M to $87.23M, according to First Call. For Q1 the company reported EPS (72c) vs. consensus of (65c) and Q1 revenue $41.68M vs. consensus of $57.43M. Telapravir, Vertex's key product, is showing evidence of being a market leader in the Hepatitis C treatment category. Vertex also has a Phase ll candidate for the treatment of Cystic Fibrosis.

Analyst Views

On June 25, Oppenheimer noted it has more confidence in the safety of Telapravir dosed 2x/d, and the firm believes that results from the 2x/d trial could be reported soon. Oppenheimer would own shares at current levels, as it believes the 2xd trial could allow the stock to appreciate significantly. On July 14, Thomas Weisel initiated Vertex with an Overweight and target of $57.