How Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) trades after earning announcements?

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is projected to declare fiscal first quarter financial results right before the stock market’s official open on May 03, 2017. The stock added about 10.3 percent in price since last results when it was at $85.19 a share. Based on the most relevant past-periods data, there is an 50 percent probability for this firm’s share price to go down following next quarterly results. Earnings reaction history tells us that the equity price moved down 14 times out of last 28 reported quarters. It has beaten earnings-per-share estimates 33% of the time in its last 12 earnings reports. It fell short of earnings estimates on 7 occasions, and it has met expectations 1 time.

Here’s how traders responded to VRTX earnings announcements over the past few quarters.

Vertex Pharmaceuticals Incorporated (VRTX) Earnings Surprises & Reaction

Given its history, the average earnings announcement surprise was 243.75 percent over the past four quarters. Back on January 25, 2017, it posted earnings per-share earnings at $0.13 which beat the consensus $-0.01 projection (positive surprise of1400%. For the quarter, revenue came in at 458.49M versus consensus estimate of 453.4M. The stock gained 0.16 percent the session following the earnings reports were released, and on 7th day price change was 0 percent.

On October 25, 2016, it reported earnings at $-0.09 a share compared with the consensus estimate of $-0.06 per share (negative surprise of -50%). Revenue of 413.54M for that quarter was below the $417.22M analysts had expected. The stock retreated 0% the day following the earnings announcement, and on 7th day price change was -1.05%.

On July 27, 2016, it recorded $-0.01 a share in earnings which topped the consensus estimate of $-0.02 (positive surprise of 50%). Revenue for the quarter was $431.52M while analysts called for revenues to be $427.94M. The stock gained 0.21% the day following the earnings data was made public, and on 7th day price change was 4.61%.

On April 27, 2016, it announced earnings per share at $-0.13 versus the consensus estimate of $0.04 per share (negative surprise of -425%). That came on revenues of $397.15M for that period. Analysts had expected $439.55M in revenue.

Vertex Pharmaceuticals Incorporated Earnings Estimates

As Q1 earnings announcement date approaches, Wall Street is expecting earnings per share of $0.39. The analysts’ present consensus range is $0.23-$1.21 for EPS. The market consensus range for revenue is between $448M and $709.27M, with an average of $508.81M.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) last ended at $92.95, sending the company’s market cap near $22.99B. The consensus 12-month price target from analysts covering the stock is $99.7. The share price has declined -10.39% from its top level in 52 weeks and dropped 26.17% this year. It recently traded in a range of $92.93-$94.24 at a volume of 897550 shares. The recent trading ended with the price nearly 2.24 higher for the last 5 trading days, rebounding 30.07% from its 52-week low.

 

Elbert Edwards: