Earnings Preview: Vertex Pharmaceuticals' EPS, Revenue Expected to Rise

Vertex Pharmaceuticals (NASDAQ: VRTX) unveils its next round of earnings this Thursday, October 27, 2011. Here's Benzinga's essential guide to Vertex Pharmaceuticals' third quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of 15 cents/share and revenues of $343.4 million. Vertex Pharmaceuticals' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a loss of 99 cents/share on revenues of $23.8 million. We'll have to wait for Thursday to see if Vertex Pharmaceuticals reports higher EPS and revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Vertex Pharmaceuticals were trading at $44.01 as of October 24, 2011. Shares are up 25.6% year to date. For a full 12 months, the return has risen by 8.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Vertex Pharmaceuticals is a Hold. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how some of the other healthcare companies are doing? Here are a few of Vertex Pharmaceuticals' peers in that sector.

• Abbott Laboratories Com Stk NPV (NYSE: ABT): Hold with a $1.18 recent quarter EPS
• Bristol-Myers Squibb (NYSE: BMY): Hold with a $0.56 recent quarter EPS
• Gilead Sciences (NASDAQ: GILD): Moderate Buy with a $0.95 recent quarter EPS
• GlaxoSmithKline plc (NYSE: GSK): Hold with a $0.81 recent quarter EPS

Vertex Pharmaceuticals is in the medical-bioengineering industry, which has experienced price/earnings growth of 0.3%.

Finally, a description of the company's main areas of operation: Vertex Pharmaceuticals is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases.

Take Action:

Now that you've gotten an advanced peak at Vertex Pharmaceuticals' upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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