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Jazz (JAZZ) Up 2.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Jazz Pharmaceuticals (JAZZ - Free Report) . Shares have added about 2.8% 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.
Jazz Pharmaceuticals Q4 Earnings and Sales Beat Estimates
Jazz Pharmaceuticals reported adjusted earnings of $4.21 per share for the fourth quarter of 2021, beating the Zacks Consensus Estimate of $3.71. Earnings rose 5.3% year over year.
Total revenues in the reported quarter rose 35% year over year to $897.0 million, beating the Zacks Consensus Estimate of $861 million. The increase was driven by sales of new drugs and drugs added from the acquisition of GW Pharmaceuticals.
Net product sales increased 35% from the year-ago quarter to $892.9 million. In the quarter, 59% of Jazz’ net product sales came from newly launched and acquired products.
Royalties and contract revenues declined 8.7% to $3.9 million in the quarter.
Neuroscience Products
Sales of Jazz’s neuroscience products increased 48% to $684.8 million.
Net product sales of the combined oxybate business increased 4% to $471.4 million in the quarter. Sales of Xyrem, declined 34% year over year to $288.8 million due to patients switching to Xywav.
Xywav recorded sales of $182.7 million in the quarter compared with $153.1 million in the previous quarter. At the end of the fourth quarter, Jazz had approximately 6,900 active Xywav patients, up from 6,000 at the end of third-quarter 2021. Jazz launched Xyway for a new indication — idiopathic hypersomnia (IH) — in November 2021. For the IH indication, the company saw positive early launch momentum with approximately 250 active Xywav patients with IH as of the end of the fourth quarter.
Sunosi recorded sales of $14.9 million in the quarter, up 71%.
Sales of Epidiolex/Epidyolex rose 35% (on a proforma basis) to $193.8 million due to a temporary increase in specialty pharmacy inventory levels. Excluding this temporary benefit, Epidiolex/ Epidyolex sales rose 10% on a sequential basis in the fourth quarter. Jazz is making significant progress with respect to the launch of Epidyolex in Europe.
Sativex recorded sales of $4.6 million in the quarter.
Oncology Products
Oncology product sales increased 5.4% to $207.1 million.
Zepzelca recorded sales of $64.8 million in the quarter compared with $71.7 million in the previous quarter.
Vyxeos generated sales of $34.8 million, up 12% from the year-ago period.
Rylaze recorded sales of $65.0 million in the quarter compared with $20.7 million in the previous quarter, reflecting the drug’s strong early demand and an initial buildup of inventory.
Defitelio sales increased 23% to $42.5 million in the quarter.
Cost Discussion
Adjusted selling, general and administrative (SG&A) expenses surged 45.8% to $328.7 million to support higher headcount costs and recent launches. Adjusted research and development (R&D) expenses increased 66.9% to $140.1 million mainly to support ongoing clinical activities of pipeline candidates of GW Pharmaceuticals.
Full-Year Results
Jazz reported adjusted earnings of $16.23 per share in 2021, up 30.3% year over year.
Total revenues in the reported quarter rose 31% year over year to $3.09 billion. The total revenues included neuroscience and oncology revenues of $2.3 billion and $734 million, respectively, with both franchises delivering more than 30% growth compared to 2020. Jazz reported over $3 billion in total revenues for the first time in 2021 helped by five key launches in the year.
2022 Guidance
The company expects 2022 adjusted earnings in the range of $16.00-$17.00 per share.
Total revenues are expected to be in the range of $3.46-$3.66 billion, suggesting approximately 15% year-over-year growth at the midpoint compared to 2021. For 2022, Jazz expects at least 65% of net product sales to come from newly approved or acquired products.
Neuroscience sales are expected in the range of $2.56 billion-$2.76 billion, implying growth of 14% at the midpoint compared to 2021. The Oncology franchise is expected to record sales in the range of $840 million-$920 million, indicating growth of 20% at the midpoint compared to 2021.
While adjusted SG&A expenses are anticipated between $1.12 billion and $1.19 billion, adjusted R&D expenses are expected to be in the band of $560 million to $600 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Jazz has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
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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Jazz (JAZZ) Up 2.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Jazz Pharmaceuticals (JAZZ - Free Report) . Shares have added about 2.8% 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.
Jazz Pharmaceuticals Q4 Earnings and Sales Beat Estimates
Jazz Pharmaceuticals reported adjusted earnings of $4.21 per share for the fourth quarter of 2021, beating the Zacks Consensus Estimate of $3.71. Earnings rose 5.3% year over year.
Total revenues in the reported quarter rose 35% year over year to $897.0 million, beating the Zacks Consensus Estimate of $861 million. The increase was driven by sales of new drugs and drugs added from the acquisition of GW Pharmaceuticals.
Net product sales increased 35% from the year-ago quarter to $892.9 million. In the quarter, 59% of Jazz’ net product sales came from newly launched and acquired products.
Royalties and contract revenues declined 8.7% to $3.9 million in the quarter.
Neuroscience Products
Sales of Jazz’s neuroscience products increased 48% to $684.8 million.
Net product sales of the combined oxybate business increased 4% to $471.4 million in the quarter. Sales of Xyrem, declined 34% year over year to $288.8 million due to patients switching to Xywav.
Xywav recorded sales of $182.7 million in the quarter compared with $153.1 million in the previous quarter. At the end of the fourth quarter, Jazz had approximately 6,900 active Xywav patients, up from 6,000 at the end of third-quarter 2021. Jazz launched Xyway for a new indication — idiopathic hypersomnia (IH) — in November 2021. For the IH indication, the company saw positive early launch momentum with approximately 250 active Xywav patients with IH as of the end of the fourth quarter.
Sunosi recorded sales of $14.9 million in the quarter, up 71%.
Sales of Epidiolex/Epidyolex rose 35% (on a proforma basis) to $193.8 million due to a temporary increase in specialty pharmacy inventory levels. Excluding this temporary benefit, Epidiolex/ Epidyolex sales rose 10% on a sequential basis in the fourth quarter. Jazz is making significant progress with respect to the launch of Epidyolex in Europe.
Sativex recorded sales of $4.6 million in the quarter.
Oncology Products
Oncology product sales increased 5.4% to $207.1 million.
Zepzelca recorded sales of $64.8 million in the quarter compared with $71.7 million in the previous quarter.
Vyxeos generated sales of $34.8 million, up 12% from the year-ago period.
Rylaze recorded sales of $65.0 million in the quarter compared with $20.7 million in the previous quarter, reflecting the drug’s strong early demand and an initial buildup of inventory.
Defitelio sales increased 23% to $42.5 million in the quarter.
Cost Discussion
Adjusted selling, general and administrative (SG&A) expenses surged 45.8% to $328.7 million to support higher headcount costs and recent launches. Adjusted research and development (R&D) expenses increased 66.9% to $140.1 million mainly to support ongoing clinical activities of pipeline candidates of GW Pharmaceuticals.
Full-Year Results
Jazz reported adjusted earnings of $16.23 per share in 2021, up 30.3% year over year.
Total revenues in the reported quarter rose 31% year over year to $3.09 billion. The total revenues included neuroscience and oncology revenues of $2.3 billion and $734 million, respectively, with both franchises delivering more than 30% growth compared to 2020. Jazz reported over $3 billion in total revenues for the first time in 2021 helped by five key launches in the year.
2022 Guidance
The company expects 2022 adjusted earnings in the range of $16.00-$17.00 per share.
Total revenues are expected to be in the range of $3.46-$3.66 billion, suggesting approximately 15% year-over-year growth at the midpoint compared to 2021. For 2022, Jazz expects at least 65% of net product sales to come from newly approved or acquired products.
Neuroscience sales are expected in the range of $2.56 billion-$2.76 billion, implying growth of 14% at the midpoint compared to 2021. The Oncology franchise is expected to record sales in the range of $840 million-$920 million, indicating growth of 20% at the midpoint compared to 2021.
While adjusted SG&A expenses are anticipated between $1.12 billion and $1.19 billion, adjusted R&D expenses are expected to be in the band of $560 million to $600 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Jazz has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Jazz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.