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Why Is Jazz (JAZZ) Up 1.3% 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 1.3% 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 drivers.
Q4 Earnings Lag, Revenues in Line With Estimates
Jazz Pharmaceuticals reported adjusted earnings of $5.02 per share in fourth-quarter 2023, missing the Zacks Consensus Estimate of $5.26. In the year-ago period, the company reported an adjusted loss of 7 cents per share.
Total revenues in the reported quarter rose 4% year over year to $1.01 billion. Sales of Xywav, Epidiolex and Rylaze drove the upside. Total revenues were in line with the Zacks Consensus Estimate. Per management, this was the first time where the company achieved a billion dollars in quarterly sales.
Quarter in Detail
Net product sales were flat year over year at $967.3 million. The reported figure beat the Zacks Consensus Estimate and our model estimates of $963 million and $951 million, respectively.
Jazz recorded $39.4 million during the quarter as royalty revenues from high-sodium oxybate authorized generic (AG).
Other royalties and contract revenues rose 13% to $5.2 million in the quarter.
Neuroscience Products
Sales of Jazz’s neuroscience products dropped 7% to $689.5 million.
Net product sales for the combined oxybate business (Xyrem + Xywav) fell 16% to $443.7 million in the quarter. This combined revenue figure was in line with the Zacks Consensus Estimate but missed our model estimates of $449 million.
Sales of the sleep disorder drug Xyrem plunged 57% year over year to $106.7 million due to patients switching to Xywav and the launch of AGs last year.
Xywav recorded sales of $337 million in the quarter, up 20% 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 Epidiolex/Epidyolex rose 16% to $240.6 million. The drug’s sales beat the Zacks Consensus Estimate and our model estimates of $229 million and $226 million, respectively.
Sativex recorded sales of $5.1 million in the quarter, up 9% year over year.
Oncology Products
Oncology product sales increased 22% to $273.8 million.
Rylaze recorded sales of $101.7 million in the quarter, up 26% year over year. Jazz stated that demand remained strong during the quarter.Rylaze sales missed the Zacks Consensus Estimate and our model estimates of $113 million and $109 million, respectively.
Zepzelca recorded sales worth $74 million in the quarter, up 3% year over year.
Vyxeos generated sales of $46.9 million, up 55% from the year-ago period’s levels.
Defitelio sales were up 26% year over year at $51.1 million in the quarter.
Cost Discussion
Adjusted selling, general and administrative (SG&A) expenses were down 6% year over year at $300.5 million due to lower compensation-related and litigation expenses incurred during the quarter.
Adjusted research and development (R&D) expenses rose 26% to $201.1 million, mainly due to increased costs of developing pipeline candidates.
Full-Year 2023 Results
Jazz reported adjusted earnings of $18.29 per share in 2023, up 39% year over year.
Total revenues in the reported quarter rose 5% year over year to $3.8 billion. The total revenues included neuroscience and oncology revenues of $2.8 billion and $1 billion, respectively.
2024 Guidance
Jazz issued its financial guidance for the full year 2024.
Total revenues are expected to be in the range of $4.0-$4.2 billion, suggesting approximately 7% year-over-year growth at the midpoint compared with 2023 levels. In 2023, Jazz expects continued growth in net sales of Xywav, Epidiolex, its oncology portfolio and royalties on net sales of AG.
Neuroscience sales are expected to be in the range of $2.80-$2.95 billion, suggesting 3.3% year-over-year growth at the midpoint compared with 2023 levels. Management also expects high-sodium oxybate AG royalty revenue to exceed $200 million in 2024. The Oncology franchise is expected to record sales in the range of $1.12-$1.22 billion, indicating growth of 15% at the midpoint from 2023 levels.
While adjusted SG&A expenses are anticipated to be between $1.17 billion and $1.23 billion, adjusted R&D expenses are expected to be in the band of $800-$850 million.
The company expects 2024 adjusted earnings in the range of $18.15-$19.35 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
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 quintile 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Jazz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Jazz belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, United Therapeutics (UTHR - Free Report) , has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
United Therapeutics reported revenues of $614.7 million in the last reported quarter, representing a year-over-year change of +25.1%. EPS of $4.36 for the same period compares with $2.67 a year ago.
For the current quarter, United Therapeutics is expected to post earnings of $5.63 per share, indicating a change of +15.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for United Therapeutics. Also, the stock has a VGM Score of B.
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Why Is Jazz (JAZZ) Up 1.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Jazz Pharmaceuticals (JAZZ - Free Report) . Shares have added about 1.3% 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 drivers.
Q4 Earnings Lag, Revenues in Line With Estimates
Jazz Pharmaceuticals reported adjusted earnings of $5.02 per share in fourth-quarter 2023, missing the Zacks Consensus Estimate of $5.26. In the year-ago period, the company reported an adjusted loss of 7 cents per share.
Total revenues in the reported quarter rose 4% year over year to $1.01 billion. Sales of Xywav, Epidiolex and Rylaze drove the upside. Total revenues were in line with the Zacks Consensus Estimate. Per management, this was the first time where the company achieved a billion dollars in quarterly sales.
Quarter in Detail
Net product sales were flat year over year at $967.3 million. The reported figure beat the Zacks Consensus Estimate and our model estimates of $963 million and $951 million, respectively.
Jazz recorded $39.4 million during the quarter as royalty revenues from high-sodium oxybate authorized generic (AG).
Other royalties and contract revenues rose 13% to $5.2 million in the quarter.
Neuroscience Products
Sales of Jazz’s neuroscience products dropped 7% to $689.5 million.
Net product sales for the combined oxybate business (Xyrem + Xywav) fell 16% to $443.7 million in the quarter. This combined revenue figure was in line with the Zacks Consensus Estimate but missed our model estimates of $449 million.
Sales of the sleep disorder drug Xyrem plunged 57% year over year to $106.7 million due to patients switching to Xywav and the launch of AGs last year.
Xywav recorded sales of $337 million in the quarter, up 20% 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 Epidiolex/Epidyolex rose 16% to $240.6 million. The drug’s sales beat the Zacks Consensus Estimate and our model estimates of $229 million and $226 million, respectively.
Sativex recorded sales of $5.1 million in the quarter, up 9% year over year.
Oncology Products
Oncology product sales increased 22% to $273.8 million.
Rylaze recorded sales of $101.7 million in the quarter, up 26% year over year. Jazz stated that demand remained strong during the quarter.Rylaze sales missed the Zacks Consensus Estimate and our model estimates of $113 million and $109 million, respectively.
Zepzelca recorded sales worth $74 million in the quarter, up 3% year over year.
Vyxeos generated sales of $46.9 million, up 55% from the year-ago period’s levels.
Defitelio sales were up 26% year over year at $51.1 million in the quarter.
Cost Discussion
Adjusted selling, general and administrative (SG&A) expenses were down 6% year over year at $300.5 million due to lower compensation-related and litigation expenses incurred during the quarter.
Adjusted research and development (R&D) expenses rose 26% to $201.1 million, mainly due to increased costs of developing pipeline candidates.
Full-Year 2023 Results
Jazz reported adjusted earnings of $18.29 per share in 2023, up 39% year over year.
Total revenues in the reported quarter rose 5% year over year to $3.8 billion. The total revenues included neuroscience and oncology revenues of $2.8 billion and $1 billion, respectively.
2024 Guidance
Jazz issued its financial guidance for the full year 2024.
Total revenues are expected to be in the range of $4.0-$4.2 billion, suggesting approximately 7% year-over-year growth at the midpoint compared with 2023 levels. In 2023, Jazz expects continued growth in net sales of Xywav, Epidiolex, its oncology portfolio and royalties on net sales of AG.
Neuroscience sales are expected to be in the range of $2.80-$2.95 billion, suggesting 3.3% year-over-year growth at the midpoint compared with 2023 levels. Management also expects high-sodium oxybate AG royalty revenue to exceed $200 million in 2024. The Oncology franchise is expected to record sales in the range of $1.12-$1.22 billion, indicating growth of 15% at the midpoint from 2023 levels.
While adjusted SG&A expenses are anticipated to be between $1.17 billion and $1.23 billion, adjusted R&D expenses are expected to be in the band of $800-$850 million.
The company expects 2024 adjusted earnings in the range of $18.15-$19.35 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
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 quintile 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Jazz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Jazz belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, United Therapeutics (UTHR - Free Report) , has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
United Therapeutics reported revenues of $614.7 million in the last reported quarter, representing a year-over-year change of +25.1%. EPS of $4.36 for the same period compares with $2.67 a year ago.
For the current quarter, United Therapeutics is expected to post earnings of $5.63 per share, indicating a change of +15.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for United Therapeutics. Also, the stock has a VGM Score of B.