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Why Is Jazz (JAZZ) Up 1.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Jazz Pharmaceuticals (JAZZ - Free Report) . Shares have added about 1.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jazz due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Tops Q2 Earnings & Sales Estimates
Jazz Pharmaceuticals 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). This reported figure beat 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 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.
Rylaze recorded sales of $107.8 million in the quarter, up 6% year over year.The drug’s sales missed the Zacks Consensus Estimate and our model estimates of $117 million and $118 million, respectively.
Zepzelca recorded sales worth $81.0 million in the quarter, up 15% year over year.
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.
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 the 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 $1.10-$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).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Jazz has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Jazz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Jazz (JAZZ) Up 1.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Jazz Pharmaceuticals (JAZZ - Free Report) . Shares have added about 1.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jazz due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Tops Q2 Earnings & Sales Estimates
Jazz Pharmaceuticals 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). This reported figure beat 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 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.
Rylaze recorded sales of $107.8 million in the quarter, up 6% year over year.The drug’s sales missed the Zacks Consensus Estimate and our model estimates of $117 million and $118 million, respectively.
Zepzelca recorded sales worth $81.0 million in the quarter, up 15% year over year.
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.
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 the 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 $1.10-$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).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Jazz has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Jazz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.