NASDAQ$VRTX

Vertex Pharmaceuticals Incorporated · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Vertex reported a strong second quarter with revenue growth and strategic advancements.

Vertex Pharmaceuticals reported a 6% increase in product revenue to $2.65 billion for Q2 2024, driven by TRIKAFTA/KAFTRIO. The company raised its full-year product revenue guidance to $10.65 to $10.85 billion. Key advancements include FDA acceptance of NDA for vanzacaftor triple in CF and suzetrigine for acute pain.

  • Product revenue increased by 6% to $2.65 billion compared to Q2 2023, driven by TRIKAFTA/KAFTRIO.
  • The FDA accepted NDA submissions for vanzacaftor triple in CF and suzetrigine for moderate-to-severe acute pain with Priority Review.
  • Vertex raised its full-year product revenue guidance to $10.65 to $10.85 billion.
  • GAAP and Non-GAAP net losses were $3.6 billion and $3.3 billion, respectively, primarily due to the Alpine acquisition-related charge.

Headline financials

Total Revenue

$2.65B

Previous: $2.49B+6.1%
EPS

-$13.92

Previous: $3.89-457.8%
GAAP Effective Tax Rate

-6.0%

Previous: 21.2%-128.3%
Non-GAAP Effective Tax Rate

-10.0%

No prior period
Diluted Shares Outstanding

258.1M

No prior period
Capital Expenditures

-$137M

Previous: -$102M-35.1%
Free Cash Flow

-$3.73B

Previous: $814M-558.4%
Net Income

-$3.59B

Previous: $916M-492.4%
Operating Income

-$3.51B

Previous: $1.03B-442.4%
Gross Profit

$2.27B

Previous: $2.18B+4.1%
R&D Expense

$794M

No prior period
Stock-Based Comp

$154M

Previous: $119M+29.3%

Revenue & EPS history

Vertex · Revenue · Quarterly

$2.65B

Q2 2024+6.1%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Vertex · $2.27B total across 1 segment · Q3 2023

  • TRIKAFTA/KAFTRIO
    $2.27B+13.1%

Forward guidance

Vertex raised its full year product revenue guidance from $10.55-$10.75 billion to $10.65-$10.85 billion. Vertex continues to expect combined Non-GAAP R&D and SG&A expenses to be in a range of $4.2 billion to $4.3 billion for the full year. Vertex now expects 2024 AIPR&D expenses of approximately $4.6 billion for the full year, including the Alpine acquisition-related charge in the second quarter of 2024.

Tailwinds

  • Total product revenues are expected to be between $10.65 billion and $10.85 billion.
  • Combined Non-GAAP R&D and SG&A expenses are projected to be between $4.2 billion and $4.3 billion.
  • Guidance includes expectations for continued growth in CF.
  • Guidance includes expectations for the launch of CASGEVY in approved indications and geographies.
  • Guidance includes expectations for continued investment in multiple mid- and late-stage clinical development programs and commercial and manufacturing capabilities.

Headwinds

  • AIPR&D expenses are expected to be approximately $4.6 billion, including the Alpine acquisition-related charge.
  • Full year Non-GAAP tax rate is impacted by the Alpine AIPR&D expense, which is non-deductible for tax.
  • Combined GAAP R&D and SG&A expenses are projected to be between $5.0 billion and $5.2 billion
  • Acquired IPR&D expenses is expected to be $4.6 billion
  • Impact of the Alpine acquisition affected the full year Non-GAAP tax rate

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.1%

Avg return

30 days after

46%

32 / 70 earnings

Positive

+6.1%

Q3 2024

Best reaction

-9.4%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-0.1%+3.0%
Q4 2025+5.7%+1.1%+0.9%
Q3 2025-1.1%-3.9%+7.4%
Q2 2025+2.8%-0.1%+5.6%
Q1 2025-9.4%-15.0%-11.3%
Q4 2024-3.1%-2.3%+7.0%
Q3 2024+6.1%+9.7%-1.5%
Q2 2024+0.9%+2.4%-1.9%
Q1 2024+2.3%+5.4%+20.4%
Q4 2023-2.0%-0.4%-3.0%
Q3 2023+0.5%-0.7%-6.0%
Q2 2023-2.4%-1.6%-2.2%
Q1 2023+1.6%+2.2%-5.0%
Q4 2022-3.8%-2.5%-5.9%
Q3 2022+0.9%+1.0%+0.6%
Q2 2022+4.7%+8.7%+2.2%
Q1 2022-7.2%-12.3%-1.6%
Q4 2021+0.5%+7.0%+1.4%
Q3 2021+2.0%+4.0%+10.3%
Q2 2021-0.3%-1.1%-1.1%
Q1 2021+2.2%+0.6%-2.3%
Q4 2020-5.1%-6.0%-9.0%
Q3 2020+0.0%+1.3%+8.8%
Q2 2020-2.4%-1.1%-3.1%
Q1 2020-2.2%+3.0%+12.1%
Q4 2019-2.3%+3.1%-3.6%
Q3 2019-1.2%+0.8%+12.1%
Q2 2019+5.8%+3.6%+6.2%
Q1 2019+0.0%+0.8%-1.3%
Q4 2018-3.0%-3.5%-5.0%
Q3 2018-4.9%-2.2%-7.9%
Q2 2018+0.6%-0.3%+1.1%
Q1 2018+0.6%-1.7%+1.5%
Q4 2017+3.9%-6.8%+2.1%
Q3 2017-4.9%-1.0%-3.0%
Q2 2017-3.6%-6.3%-5.4%
Q1 2017+1.7%+1.8%+3.1%
Q4 2016+3.8%+2.6%+4.7%
Q3 2016-0.0%-1.5%+10.9%
Q2 2016+1.3%+3.4%+2.2%
Q1 2016+3.1%
Q4 2015+0.6%
Q3 2015+4.3%
Q2 2015+5.6%
Q1 2015-1.7%
Q4 2014-7.7%
Q3 2014-1.5%
Q2 2014-3.7%
Q1 2014-2.0%
Q4 2013+3.6%
Q3 2013-7.8%
Q2 2013+1.5%
Q1 2013-1.9%
Q4 2012-2.8%
Q3 2012-6.8%
Q2 2008-1.6%
Q1 2012+2.5%
Q4 2011+2.3%
Q3 2011-0.7%
Q2 2011+4.5%
Q1 2011-1.8%
Q4 2008-1.2%
Q4 2010-1.2%
Q3 2009-0.1%
Q3 2010-0.1%
Q2 2010+5.1%
Q2 2009+5.1%
Q1 2010-0.8%
Q1 2009-0.8%
Q4 2009-0.8%

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