We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Jazz (JAZZ) Q2 Earnings: Will the Stock Disappoint?
Read MoreHide Full Article
Jazz Pharmaceuticals plc (JAZZ - Free Report) is scheduled to report second-quarter 2016 results on Aug 9, after the market closes. Last quarter, the company had comfortably surpassed expectations with a positive earnings surprise of 42.75%. Let’s see how things have shaped up for this quarter.
Factors at Play
Jazz’s key product Xyrem should continue performing well with the company remaining well-positioned in the sleep franchise market. Sales reps continue to educate healthcare providers on narcolepsy and the use of Xyrem with a focus on physicians with high narcolepsy potential and low Xyrem utilization. The company’s narcolepsy market expansion efforts include consumer facing web-based disease education to increase the awareness and diagnosis of narcolepsy in the U.S., as well as physician directed disease education.
The second quarter will also include Defitelio sales in the U.S. – the product was launched in the U.S. in early April.
Meanwhile, Jazz has been facing challenges in building sufficient inventory levels for Erwinaze due to constrained manufacturing capacity. The company may continue to experience further supply disruptions in certain markets, including the U.S., in the coming quarters.
On the second-quarter call, focus will be on the company’s performance along with pipeline progress. Defitelio’s sales ramp-up in the U.S., patent litigations related to Xyrem and the company’s business development plans will be key areas of focus.
Surprise History
Jazz’s track record is mixed with the company beating earnings estimates in two of the last four quarters and missing in the other two. The average earnings surprise over the last four quarters is +17.62%.
Our proven model does not conclusively show that Jazz is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +12.28%. This is a meaningful and leading indicator of a likely positive earnings surprise for the shares.
Zacks Rank #4 (Sell): We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Here are a few health care stocks that you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter.
Alcobra Ltd. has an Earnings ESP of +18.18% and a Zacks Rank #3. It is expected to report second-quarter results on Aug 11.
Incyte Corporation (INCY - Free Report) has an Earnings ESP of +300.00% and carries a Zacks Rank #2. It will be reporting second-quarter results on Aug 9.
Impax Laboratories Inc. has an Earnings ESP of +3.03% and carries a Zacks Rank #2. It will be reporting second-quarter results on Aug 9.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Jazz (JAZZ) Q2 Earnings: Will the Stock Disappoint?
Jazz Pharmaceuticals plc (JAZZ - Free Report) is scheduled to report second-quarter 2016 results on Aug 9, after the market closes. Last quarter, the company had comfortably surpassed expectations with a positive earnings surprise of 42.75%. Let’s see how things have shaped up for this quarter.
Factors at Play
Jazz’s key product Xyrem should continue performing well with the company remaining well-positioned in the sleep franchise market. Sales reps continue to educate healthcare providers on narcolepsy and the use of Xyrem with a focus on physicians with high narcolepsy potential and low Xyrem utilization. The company’s narcolepsy market expansion efforts include consumer facing web-based disease education to increase the awareness and diagnosis of narcolepsy in the U.S., as well as physician directed disease education.
The second quarter will also include Defitelio sales in the U.S. – the product was launched in the U.S. in early April.
Meanwhile, Jazz has been facing challenges in building sufficient inventory levels for Erwinaze due to constrained manufacturing capacity. The company may continue to experience further supply disruptions in certain markets, including the U.S., in the coming quarters.
On the second-quarter call, focus will be on the company’s performance along with pipeline progress. Defitelio’s sales ramp-up in the U.S., patent litigations related to Xyrem and the company’s business development plans will be key areas of focus.
Surprise History
Jazz’s track record is mixed with the company beating earnings estimates in two of the last four quarters and missing in the other two. The average earnings surprise over the last four quarters is +17.62%.
JAZZ PHARMACEUT Price and EPS Surprise
JAZZ PHARMACEUT Price and EPS Surprise | JAZZ PHARMACEUT Quote
Earnings Whispers?
Our proven model does not conclusively show that Jazz is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +12.28%. This is a meaningful and leading indicator of a likely positive earnings surprise for the shares.
Zacks Rank #4 (Sell): We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Here are a few health care stocks that you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter.
Alcobra Ltd. has an Earnings ESP of +18.18% and a Zacks Rank #3. It is expected to report second-quarter results on Aug 11.
Incyte Corporation (INCY - Free Report) has an Earnings ESP of +300.00% and carries a Zacks Rank #2. It will be reporting second-quarter results on Aug 9.
Impax Laboratories Inc. has an Earnings ESP of +3.03% and carries a Zacks Rank #2. It will be reporting second-quarter results on Aug 9.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>