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.
Can Jazz Pharma (JAZZ) Spring a Surprise in Q2 Earnings?
Read MoreHide Full Article
Jazz Pharmaceuticals plc (JAZZ - Free Report) is scheduled to report second-quarter 2017 results on Aug 8, after the market closes.
Jazz’s shares have significantly outperformed the industry so far this year. The stock has surged 37.9% compared with the industry’s 1.7% increase during the period.
Jazz has quite an encouraging earnings track record. The company beat estimates in three of the last four quarters with an average positive earnings surprise of 14.48%. However, last quarter, the company missed expectations with a negative earnings surprise of 0.70%.
Let’s see how things have shaped up for this quarter:
Factors at Play
At the second-quarter conference call, investor focus will be on the performance of Jazz’s lead product, Xyrem, for cataplexy and excessive daytime sleepiness (EDS). Investors will also be looking out for the company’s pipeline progress. Defitelio’s sales ramp up in the U.S., while Xyrem face issues related to patent litigations. The company’s business development plans are also expected to draw attention.
Xyrem should deliver a strong performance in the second quarter. The company is also striving to expand Xyrem’s label and currently conducting a phase II/III EXPRESS study on children and adolescents, suffering from cataplexy with narcolepsy. In Apr 2017, the company announced positive top-line efficacy results from the study. It is also planning to submit an sNDA for Xyrem to include the pediatric phase III study results later in 2017.
Defitelio (veno-occlusive disease) was launched in the U.S. in early Apr 2016 and sales of the drug have picked up pace ever since. A phase III clinical trial on Defitelio for the potential prevention of veno-occlusive disease (VOD) on high-risk adults and pediatric patients is also currently underway.
However, Jazz has been facing challenges in building sufficient inventory levels for Erwinaze due to constrained manufacturing capacity. The company may further continue to experience supply disruptions in certain markets this quarter, including the U.S. and beyond.
On the other hand, in Apr 2017, the company announced positive efficacy results from a global multicenter, phase III TONES 2 study, evaluating its lead pipeline candidate JZP-110 on adult patients with excessive sleepiness associated with narcolepsy. In the trial, JZP-110 demonstrated a highly statistically significant improvement in the co-primary endpoints. The company plans to submit an NDA to the FDA for the given indication later this year.
In May, the FDA accepted an NDA for its second pipeline candidate, Vyxeos, on a priority review basis. We believe, Vyxeos has multi-million dollar potential. We expect the company to update on Vyxeos at the second-quarter conference call.
Earnings Whispers
Our proven model does not conclusively show that Jazz is likely to beat 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. But that is not the case here as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.85. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Although Jazz’s Zacks Rank #3 (Hold) increases the predictive power of ESP, its 0.00% Earnings ESP makes surprise prediction difficult.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Per our model, here are some other health care stocks with the right combination of elements to come up with an earnings beat this quarter:
Arena Pharmaceuticals, Inc. is scheduled to release results on Aug 7. The company has an Earnings ESP of +5.88% and a Zacks Rank #2.
Puma Biotechnology, Inc. (PBYI - Free Report) is expected to release results on Aug 8. The company has an Earnings ESP of +3.33% and a Zacks Rank #3.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Can Jazz Pharma (JAZZ) Spring a Surprise in Q2 Earnings?
Jazz Pharmaceuticals plc (JAZZ - Free Report) is scheduled to report second-quarter 2017 results on Aug 8, after the market closes.
Jazz’s shares have significantly outperformed the industry so far this year. The stock has surged 37.9% compared with the industry’s 1.7% increase during the period.
Jazz has quite an encouraging earnings track record. The company beat estimates in three of the last four quarters with an average positive earnings surprise of 14.48%. However, last quarter, the company missed expectations with a negative earnings surprise of 0.70%.
Jazz Pharmaceuticals PLC Price and EPS Surprise
Jazz Pharmaceuticals PLC Price and EPS Surprise | Jazz Pharmaceuticals PLC Quote
Let’s see how things have shaped up for this quarter:
Factors at Play
At the second-quarter conference call, investor focus will be on the performance of Jazz’s lead product, Xyrem, for cataplexy and excessive daytime sleepiness (EDS). Investors will also be looking out for the company’s pipeline progress. Defitelio’s sales ramp up in the U.S., while Xyrem face issues related to patent litigations. The company’s business development plans are also expected to draw attention.
Xyrem should deliver a strong performance in the second quarter. The company is also striving to expand Xyrem’s label and currently conducting a phase II/III EXPRESS study on children and adolescents, suffering from cataplexy with narcolepsy. In Apr 2017, the company announced positive top-line efficacy results from the study. It is also planning to submit an sNDA for Xyrem to include the pediatric phase III study results later in 2017.
Defitelio (veno-occlusive disease) was launched in the U.S. in early Apr 2016 and sales of the drug have picked up pace ever since. A phase III clinical trial on Defitelio for the potential prevention of veno-occlusive disease (VOD) on high-risk adults and pediatric patients is also currently underway.
However, Jazz has been facing challenges in building sufficient inventory levels for Erwinaze due to constrained manufacturing capacity. The company may further continue to experience supply disruptions in certain markets this quarter, including the U.S. and beyond.
On the other hand, in Apr 2017, the company announced positive efficacy results from a global multicenter, phase III TONES 2 study, evaluating its lead pipeline candidate JZP-110 on adult patients with excessive sleepiness associated with narcolepsy. In the trial, JZP-110 demonstrated a highly statistically significant improvement in the co-primary endpoints. The company plans to submit an NDA to the FDA for the given indication later this year.
In May, the FDA accepted an NDA for its second pipeline candidate, Vyxeos, on a priority review basis. We believe, Vyxeos has multi-million dollar potential. We expect the company to update on Vyxeos at the second-quarter conference call.
Earnings Whispers
Our proven model does not conclusively show that Jazz is likely to beat 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. But that is not the case here as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.85. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Although Jazz’s Zacks Rank #3 (Hold) increases the predictive power of ESP, its 0.00% Earnings ESP makes surprise prediction difficult.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Per our model, here are some other health care stocks with the right combination of elements to come up with an earnings beat this quarter:
Syndax Pharmaceuticals, Inc. (SNDX - Free Report) is scheduled to release results on Aug 10 with an Earnings ESP of +7.60% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arena Pharmaceuticals, Inc. is scheduled to release results on Aug 7. The company has an Earnings ESP of +5.88% and a Zacks Rank #2.
Puma Biotechnology, Inc. (PBYI - Free Report) is expected to release results on Aug 8. The company has an Earnings ESP of +3.33% and a Zacks Rank #3.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>