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Jazz Pharma (JAZZ) Up 7.6% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Jazz Pharmaceuticals PLC (JAZZ - Free Report) . Shares have added about 7.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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.
Jazz Pharma Fourth Quarter Earnings Beat, Sales Miss Estimates
Jazz Pharmaceuticals reported fourth-quarter 2016 earnings of $1.91 per share which beat the Zacks Consensus Estimate of $1.65.
However, adjused earnings of $2.31 per share (including stock based compensation expense), declined 4.5% from the year-ago figure.
Jazz’s shares outperformed Zacks classified Medical-Drugs industry so far this year. The company’s shares gained 21.6%, while the industry registered an increase of 7.9%.
Total revenue in the reported quarter climbed 16.3% year over year to $396.6 million, mainly due to higher sales of Xyrem and Defitelio. Reported revenues, however, fell short of the Zacks Consensus Estimate of $401 million.
Quarter in Detail
Net product sales in fourth-quarter 2016 increased 15.9% from the year-ago quarter to 392.6 million.
In the reported quarter, Xyrem sales rose 15.6% to $291.2 million. The company reported 6% bottle volume growth of Xyrem in the quarter.
Xyrem is currently facing patent challenges from several companies. A decision on the Roxane Laboratories case will be announced in the second quarter of 2017, while the trial dates for other patent challenges are yet to be set.
Erwinaze/Erwinase generated revenues of $56.7 million, up 12.7% year over year. However, the performance was negatively impacted in 2016 by constrained manufacturing capacity. This led to fluctuations in inventory levels and temporary disruptions in the company's ability to supply certain markets, including the U.S. The company expects these temporary supply interruptions to continue in 2017.
Prialt revenues came in at $6.1 million, down 6.2% from the year-ago period. Psychiatry product sales plunged 67% to $2.9 million.
The company recorded Defitelio sales of $29.7 million in the fourth quarter, up 60.5% year over year. Sales benefited from the Apr 2016 launch of the drug in the U.S., where the drug garnered sales of $9.7 million in the fourth quarter.
Adjusted selling, general and administrative (SG&A) expenses (excluding stock-based compensation expenses) during the quarter rose 23.8% to $108.2 million, primarily due to a higher headcount and an increase in other expenses related to business expansion.
Adjusted research and development (R&D) expenses increased 52.3% to $39.6 million due to costs related to the development of its pipeline candidate JZP-110, including accelerated enrollment in the narcolepsy studies, oxybate-related R&D programs, study for Defitelio, the Xyrem phase III pediatric study activities and costs related to Vyxeos rolling NDA submission.
2016 Results
Full-year sales increased 12.9% year over year to $1.49 billion. Sales were in line with the Zacks Consensus Estimate.
The full-year earnings of $8.54 per share surpassed Zacks Consensus Estimate of $6.12. The company posted earnings of $8.00 per share a year ago.
2017 Guidance
The company estimates earnings in the range of $10.70–$11.30 per share (excluding stock based compensation expenses) in 2017. Jazz expects revenues in the band of $1.62–$1.70 billion during the same period. Total product sales are still expected in the range of $1.62–$1.69 billion.
Xyrem sales are expected in the range of $1.22–$1.25 billion. Erwinaze/Erwinase sales are anticipated in the range of $205–$225 million. Defitelio revenues are now projected in the range of $130–$150 million.
The company projects adjusted SG&A expenses in the range of $440–$460 million, while R&D costs are expected in the range of $165–$180 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted lower by 11.7% due to these changes.
At this time, Jazz Pharma's stock has a subpar Growth Score of 'D', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stocks has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Jazz Pharma (JAZZ) Up 7.6% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Jazz Pharmaceuticals PLC (JAZZ - Free Report) . Shares have added about 7.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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.
Jazz Pharma Fourth Quarter Earnings Beat, Sales Miss Estimates
Jazz Pharmaceuticals reported fourth-quarter 2016 earnings of $1.91 per share which beat the Zacks Consensus Estimate of $1.65.
However, adjused earnings of $2.31 per share (including stock based compensation expense), declined 4.5% from the year-ago figure.
Jazz’s shares outperformed Zacks classified Medical-Drugs industry so far this year. The company’s shares gained 21.6%, while the industry registered an increase of 7.9%.
Total revenue in the reported quarter climbed 16.3% year over year to $396.6 million, mainly due to higher sales of Xyrem and Defitelio. Reported revenues, however, fell short of the Zacks Consensus Estimate of $401 million.
Quarter in Detail
Net product sales in fourth-quarter 2016 increased 15.9% from the year-ago quarter to 392.6 million.
In the reported quarter, Xyrem sales rose 15.6% to $291.2 million. The company reported 6% bottle volume growth of Xyrem in the quarter.
Xyrem is currently facing patent challenges from several companies. A decision on the Roxane Laboratories case will be announced in the second quarter of 2017, while the trial dates for other patent challenges are yet to be set.
Erwinaze/Erwinase generated revenues of $56.7 million, up 12.7% year over year. However, the performance was negatively impacted in 2016 by constrained manufacturing capacity. This led to fluctuations in inventory levels and temporary disruptions in the company's ability to supply certain markets, including the U.S. The company expects these temporary supply interruptions to continue in 2017.
Prialt revenues came in at $6.1 million, down 6.2% from the year-ago period. Psychiatry product sales plunged 67% to $2.9 million.
The company recorded Defitelio sales of $29.7 million in the fourth quarter, up 60.5% year over year. Sales benefited from the Apr 2016 launch of the drug in the U.S., where the drug garnered sales of $9.7 million in the fourth quarter.
Adjusted selling, general and administrative (SG&A) expenses (excluding stock-based compensation expenses) during the quarter rose 23.8% to $108.2 million, primarily due to a higher headcount and an increase in other expenses related to business expansion.
Adjusted research and development (R&D) expenses increased 52.3% to $39.6 million due to costs related to the development of its pipeline candidate JZP-110, including accelerated enrollment in the narcolepsy studies, oxybate-related R&D programs, study for Defitelio, the Xyrem phase III pediatric study activities and costs related to Vyxeos rolling NDA submission.
2016 Results
Full-year sales increased 12.9% year over year to $1.49 billion. Sales were in line with the Zacks Consensus Estimate.
The full-year earnings of $8.54 per share surpassed Zacks Consensus Estimate of $6.12. The company posted earnings of $8.00 per share a year ago.
2017 Guidance
The company estimates earnings in the range of $10.70–$11.30 per share (excluding stock based compensation expenses) in 2017. Jazz expects revenues in the band of $1.62–$1.70 billion during the same period. Total product sales are still expected in the range of $1.62–$1.69 billion.
Xyrem sales are expected in the range of $1.22–$1.25 billion. Erwinaze/Erwinase sales are anticipated in the range of $205–$225 million. Defitelio revenues are now projected in the range of $130–$150 million.
The company projects adjusted SG&A expenses in the range of $440–$460 million, while R&D costs are expected in the range of $165–$180 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted lower by 11.7% due to these changes.
Jazz Pharmaceuticals PLC Price and Consensus
Jazz Pharmaceuticals PLC Price and Consensus | Jazz Pharmaceuticals PLC Quote
VGM Scores
At this time, Jazz Pharma's stock has a subpar Growth Score of 'D', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stocks has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.