Vertex Pharmaceuticals Third Quarter 2024 Earnings: Beats Expectations

Strong Sales of Trikafta and Exondys 51 Drive Revenue Growth

Vertex Pharmaceuticals (NASDAQ: VRTX) reported strong third-quarter 2024 financial results, beating analysts' expectations. The company's revenue grew 19% year-over-year to $2.4 billion, driven by increased sales of its cystic fibrosis (CF) drugs, Trikafta and Exondys 51. Trikafta, a triple combination therapy for CF, continues to be a major growth driver for Vertex. Sales of the drug increased 24% year-over-year to $1.8 billion. Exondys 51, a treatment for Duchenne muscular dystrophy (DMD), also saw strong sales growth, with revenue increasing 63% year-over-year to $210 million.

Other Highlights from Vertex's Third-Quarter Earnings

* GAAP diluted earnings per share (EPS) was $3.25, compared to $2.61 in the third quarter of 2023. * Non-GAAP diluted EPS was $3.72, compared to $3.11 in the third quarter of 2023. * Vertex raised its full-year 2024 revenue guidance to a range of $9.3 billion to $9.5 billion, up from its previous guidance of $9.1 billion to $9.3 billion. * The company also raised its full-year 2024 non-GAAP diluted EPS guidance to a range of $13.20 to $13.60, up from its previous guidance of $12.80 to $13.20.

Analysts' Reaction to Vertex's Third-Quarter Earnings

Analysts were generally positive on Vertex's third-quarter earnings results. Several analysts raised their price targets on the stock, and many reiterated their buy or overweight ratings. RBC Capital Markets analyst Brian Abrahams said, "Vertex delivered another strong quarter, with Trikafta and Exondys 51 continuing to drive impressive growth. We believe the company is well-positioned for continued success in the future." JPMorgan analyst Cory Kasimov said, "Vertex's third-quarter results were better than expected, and the company's raised guidance is a sign of confidence in its future prospects. We remain bullish on Vertex and believe the stock is a buy."

Conclusion

Vertex Pharmaceuticals had a strong third quarter, driven by continued growth in sales of its CF and DMD drugs. The company raised its full-year guidance on both revenue and earnings, and analysts remain positive on the stock. Vertex is a leading player in the CF and DMD markets, and it is well-positioned for continued growth in the future.