Vertex Pharmaceuticals stock fell nearly 10% due to lower-than-expected first-quarter earnings and revenue miss

From Yahoo Finance: 2025-05-06 16:28:00

Vertex Pharmaceuticals reported lower-than-expected first-quarter 2025 earnings, with adjusted EPS of $4.06, missing the consensus of $4.32. Sales of $2.77 billion fell short of the expected $2.85 billion. Total revenue increased by 3%, driven by Trikafta/Kaftrio and Alyftrek. U.S. revenue rose 9% to $1.66 billion. Outside the U.S., revenue decreased 5% to $1.11 billion due to IP rights violation in Russia.

Vertex raised total revenue guidance to $11.85-$12 billion from $11.75-$12 billion. Guidance includes an immaterial cost impact from tariffs. The company paused the Phase 1/2 study of VX-522 due to a tolerability issue. Analysts remain positive on Vertex’s long-term growth potential despite the revenue miss and stock decline. Leerink downgrades, Needham reiterates, JP Morgan maintains.

VRTX stock closed down 9.91% at $450.61. Analyst reactions vary, with Leerink downgrading, Needham reiterating, and JP Morgan maintaining. Vertex remains positive on future growth opportunities. The company is confident in its pipeline and revenue outlook. Vertex temporarily paused a study due to tolerability issues, but remains optimistic about the data generated.

Read more: Why Did Vertex Pharmaceuticals Stock Fall On Tuesday?