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JAZZ Tops Q2 Earnings & Sales Estimates, Revises '24 View
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Jazz Pharmaceuticals (JAZZ - Free Report) reported adjusted earnings of $5.30 per share in second-quarter 2024, beating the Zacks Consensus Estimate of $4.68. Earnings rose 18% year over year.
Total revenues in the reported quarter rose 7% year over year to $1.02 billion. Sales of Xywav, Epidiolex and Rylaze drove the upside. The reported figure beat the Zacks Consensus Estimate of $1.0 billion.
Quarter in Detail
Net product sales rose 2% year over year at $964.1 million. The reported figure beat the Zacks Consensus Estimate and our model estimates of $946 million and $936 million, respectively.
Jazz recorded $54.2 million as royalty revenues from high-sodium oxybate authorized generic (AG), beating the Zacks Consensus Estimate of $53 million and our model estimate of $52 million.
Other royalties and contract revenues rose 15% to $5.5 million in the quarter.
Neuroscience Products
Sales of Jazz’s neuroscience products dropped 1% to $684.1 million.
Net product sales for the combined oxybate business (Xyrem + Xywav) fell 11% to $430.7 million in the quarter. This combined revenue figure beat the Zacks Consensus Estimate of $428 million and our model estimates of $420 million.
Sales of the sleep disorder drug Xyrem plunged 61% year over year to $62.2 million due to patients switching to Xywav and the launch of AGs last year.
Xywav, a low-sodium formulation of Xyrem, recorded sales of $368.5 million in the quarter, up 13% year over year. The upside can be attributed to the encouraging uptake of the drug in narcolepsy and idiopathic hypersomnia (IH) indications. The drug is currently Jazz’s most extensive product by net sales.
Sales of the epilepsy drug Epidiolex/Epidyolex rose 22% to $247.1 million, driven by geographic expansion in ex-U.S. markets. Epidiolex sales beat the Zacks Consensus Estimate and our model estimates of $229 million and $228 million, respectively.
Cannabis-based mouth spray Sativex recorded sales of $6.4 million in the quarter, up 127% year over year.
Oncology Products
Oncology product sales increased 10% to $277.3 million.
Chemotherapy drug Rylaze/Enrylaze recorded sales of $107.8 million in the quarter, up 6% year over year. Rylaze is approved in the United States for treating acute lymphoblastic leukemia (ALL) and lymphoblastic lymphoma (LBL) patients. The drug was recently approved in Europe for a similar indication, where it was commercially launched in fourth-quarter 2023 under the trade name Enrylaze.
Rylaze sales missed the Zacks Consensus Estimate and our model estimates of $117 million and $118 million, respectively.
Zepzelca, approved for small cell lung cancer, recorded sales worth $81.0 million in the quarter, up 15% year over year.
Acute myeloid leukemia drug Vyxeos generated sales of $43.0 million, up 26% from the year-ago period’s levels.
Defitelio sales inched down 1% year over year at $45.4 million in the quarter.
Jazz’s shares have lost 10.3% year to date compared with the industry’s 2.4% fall.
Image Source: Zacks Investment Research
Cost Discussion
Adjusted selling, general and administrative (SG&A) expenses were up 10% year over year at $303.4 million due to increased investment in the company’s priority programs.
Adjusted research and development (R&D) expenses rose 6% to $203.5 million, primarily to provide support for the increased costs of developing the company’s pipeline candidates.
2024 Guidance
Jazz revised its previously-issued financial guidance for full-year 2024.
Total revenues are now projected in the range of $4.0-$4.1 billion compared with the previously-issued guidance of $4.0-4.2 billion.
Neuroscience sales are now expected in the range of $2.83-$2.93 billion compared with the previous guidance of $2.80-2.95 billion. The Oncology franchise is expected to record sales in the range of $1.11-$1.15 billion, down from the previous guidance of $1.12-$1.22 billion. Management maintained its guidance for high-sodium oxybate AG royalty revenues to exceed $200 million in 2024.
Adjusted earnings are now expected to be in the range of $19.20-$20.30 per share, up from the previous guidance of $18.15-$19.35.
While adjusted SG&A expenses are anticipated to be in the range of $1.19-$1.23 billion (previously: $1.17-$1.23 billion), adjusted R&D expenses are expected in the band of $810-$850 million (previously: $800-$850 million).
Recent Updates
During the second quarter, JAZZ resumed its existing authorized share repurchase program, which still has an outstanding balance of $161 million. Acknowledging this remaining amount as minimal, the company’s board of directors authorized a new share repurchase program last week to repurchase shares up to $500 million.
Management also announced that it is withdrawing the financial guidance issued as part of its ‘Vision 2025’ plan. The company continues to commit to the priorities of the plan, including disciplined capital allocation for long-term growth and diversifying revenue base.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have improved from 14 cents to 13 cents. Estimates for 2025 have improved from $3.44 to $3.21 during the same period. Year to date, shares of Entrada Therapeutics have risen 9.2%.
Earnings of Entrada Therapeutics beat estimates in two of the last four quarters while missing the mark on two other occasions. Entrada delivered a four-quarter average earnings surprise of 42.18%.
In the past 60 days, the loss per share estimates for Immatics have improved from $1.26 to $1.25 for 2024. During the same period, loss estimates for 2025 have improved from $1.49 to $1.41. Year to date, shares of IMTX have risen 14.2%.
Earnings of Immatics beat estimates in three of the last four quarters while meeting the mark on one occasion, delivering a four-quarter average earnings surprise of 32.57%.
In the past 60 days, the Zacks Consensus Estimate for Halozyme Therapeutics’ earnings has risen from $3.69 per share to $3.90. For 2025, earnings estimates have increased from $4.50 to $4.81 in the past 60 days. Year to date, shares of HALO have surged 49.5%.
Earnings of Halozyme beat estimates in three of the last four quarters while meeting the mark on one occasion, delivering a four-quarter average earnings surprise of 9.40%.
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JAZZ Tops Q2 Earnings & Sales Estimates, Revises '24 View
Jazz Pharmaceuticals (JAZZ - Free Report) reported adjusted earnings of $5.30 per share in second-quarter 2024, beating the Zacks Consensus Estimate of $4.68. Earnings rose 18% year over year.
Total revenues in the reported quarter rose 7% year over year to $1.02 billion. Sales of Xywav, Epidiolex and Rylaze drove the upside. The reported figure beat the Zacks Consensus Estimate of $1.0 billion.
Quarter in Detail
Net product sales rose 2% year over year at $964.1 million. The reported figure beat the Zacks Consensus Estimate and our model estimates of $946 million and $936 million, respectively.
Jazz recorded $54.2 million as royalty revenues from high-sodium oxybate authorized generic (AG), beating the Zacks Consensus Estimate of $53 million and our model estimate of $52 million.
Other royalties and contract revenues rose 15% to $5.5 million in the quarter.
Neuroscience Products
Sales of Jazz’s neuroscience products dropped 1% to $684.1 million.
Net product sales for the combined oxybate business (Xyrem + Xywav) fell 11% to $430.7 million in the quarter. This combined revenue figure beat the Zacks Consensus Estimate of $428 million and our model estimates of $420 million.
Sales of the sleep disorder drug Xyrem plunged 61% year over year to $62.2 million due to patients switching to Xywav and the launch of AGs last year.
Xywav, a low-sodium formulation of Xyrem, recorded sales of $368.5 million in the quarter, up 13% year over year. The upside can be attributed to the encouraging uptake of the drug in narcolepsy and idiopathic hypersomnia (IH) indications. The drug is currently Jazz’s most extensive product by net sales.
Sales of the epilepsy drug Epidiolex/Epidyolex rose 22% to $247.1 million, driven by geographic expansion in ex-U.S. markets. Epidiolex sales beat the Zacks Consensus Estimate and our model estimates of $229 million and $228 million, respectively.
Cannabis-based mouth spray Sativex recorded sales of $6.4 million in the quarter, up 127% year over year.
Oncology Products
Oncology product sales increased 10% to $277.3 million.
Chemotherapy drug Rylaze/Enrylaze recorded sales of $107.8 million in the quarter, up 6% year over year. Rylaze is approved in the United States for treating acute lymphoblastic leukemia (ALL) and lymphoblastic lymphoma (LBL) patients. The drug was recently approved in Europe for a similar indication, where it was commercially launched in fourth-quarter 2023 under the trade name Enrylaze.
Rylaze sales missed the Zacks Consensus Estimate and our model estimates of $117 million and $118 million, respectively.
Zepzelca, approved for small cell lung cancer, recorded sales worth $81.0 million in the quarter, up 15% year over year.
Acute myeloid leukemia drug Vyxeos generated sales of $43.0 million, up 26% from the year-ago period’s levels.
Defitelio sales inched down 1% year over year at $45.4 million in the quarter.
Jazz’s shares have lost 10.3% year to date compared with the industry’s 2.4% fall.
Cost Discussion
Adjusted selling, general and administrative (SG&A) expenses were up 10% year over year at $303.4 million due to increased investment in the company’s priority programs.
Adjusted research and development (R&D) expenses rose 6% to $203.5 million, primarily to provide support for the increased costs of developing the company’s pipeline candidates.
2024 Guidance
Jazz revised its previously-issued financial guidance for full-year 2024.
Total revenues are now projected in the range of $4.0-$4.1 billion compared with the previously-issued guidance of $4.0-4.2 billion.
Neuroscience sales are now expected in the range of $2.83-$2.93 billion compared with the previous guidance of $2.80-2.95 billion. The Oncology franchise is expected to record sales in the range of $1.11-$1.15 billion, down from the previous guidance of $1.12-$1.22 billion. Management maintained its guidance for high-sodium oxybate AG royalty revenues to exceed $200 million in 2024.
Adjusted earnings are now expected to be in the range of $19.20-$20.30 per share, up from the previous guidance of $18.15-$19.35.
While adjusted SG&A expenses are anticipated to be in the range of $1.19-$1.23 billion (previously: $1.17-$1.23 billion), adjusted R&D expenses are expected in the band of $810-$850 million (previously: $800-$850 million).
Recent Updates
During the second quarter, JAZZ resumed its existing authorized share repurchase program, which still has an outstanding balance of $161 million. Acknowledging this remaining amount as minimal, the company’s board of directors authorized a new share repurchase program last week to repurchase shares up to $500 million.
Management also announced that it is withdrawing the financial guidance issued as part of its ‘Vision 2025’ plan. The company continues to commit to the priorities of the plan, including disciplined capital allocation for long-term growth and diversifying revenue base.
Jazz Pharmaceuticals PLC Price
Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC Quote
Zacks Rank & Key Picks
Jazz currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Entrada Therapeutics (TRDA - Free Report) , Immatics (IMTX - Free Report) and Halozyme Therapeutics (HALO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have improved from 14 cents to 13 cents. Estimates for 2025 have improved from $3.44 to $3.21 during the same period. Year to date, shares of Entrada Therapeutics have risen 9.2%.
Earnings of Entrada Therapeutics beat estimates in two of the last four quarters while missing the mark on two other occasions. Entrada delivered a four-quarter average earnings surprise of 42.18%.
In the past 60 days, the loss per share estimates for Immatics have improved from $1.26 to $1.25 for 2024. During the same period, loss estimates for 2025 have improved from $1.49 to $1.41. Year to date, shares of IMTX have risen 14.2%.
Earnings of Immatics beat estimates in three of the last four quarters while meeting the mark on one occasion, delivering a four-quarter average earnings surprise of 32.57%.
In the past 60 days, the Zacks Consensus Estimate for Halozyme Therapeutics’ earnings has risen from $3.69 per share to $3.90. For 2025, earnings estimates have increased from $4.50 to $4.81 in the past 60 days. Year to date, shares of HALO have surged 49.5%.
Earnings of Halozyme beat estimates in three of the last four quarters while meeting the mark on one occasion, delivering a four-quarter average earnings surprise of 9.40%.