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Jazz Pharma (JAZZ) Q4 Earnings: Is a Surprise in Store?
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Jazz Pharmaceuticals plc (JAZZ - Free Report) is scheduled to report fourth-quarter 2016 results on Feb 28 after the market closes.
Jazz’s shares have outperformed the Zacks classified Medical-Drugs industry so far this year. Specifically, the company’s stock gained 23.7% during the period, while the industry recorded an increase of 6.9%.
Jazz has quite an encouraging earnings track record. Last quarter, the company comfortably surpassed expectations with a positive earnings surprise of 37.58%. In fact, the company beat estimates in all the last four quarters with a positive average earnings surprise of 30.59%. Let’s see how things have shaped up for this quarter.
Jazz expects exranings in the range of $9.90–$10.30 per share (excluding stock based compensation expenses) for 2016. It expects revenues in the range of $1.49–$1.53 billion. Total product sales are expected in the range of $1.48–$1.52 billion.
The company’s key drugs include Xyrem for cataplexy and excessive daytime sleepiness (EDS), Erwinaze for acute lymphoblastic leukemia, and Defitelio for the treatment of adult and pediatric patients with hepatic veno-occlusive disease (VOD). Jazz’s lead product, Xyrem, should continue performing well. In the third quarter, Xyrem sales rose 17.7% year over year. The company’s narcolepsy market expansion efforts include web-based disease awareness programs, utilization of the Swiss Narcolepsy Scale and an overall focus on healthcare provider education are expected to support sales of Xyrem in the fourth quarter.
Defitelio sales in the third quarter were driven mainly by its launch in the U.S. in early April. The company reported that 105 unique accounts ordered Defitileo in the third quarter, with 72% reordering since its launch. However, at the third quarter conference call, the company lowered its guidance for Defitelio/defibrotide net sales for 2016 to a range of $105 million to $120 million from a previous range of $105 million to $125 million. The company expects approximately $80 million to $90 million sales in Europe and rest of world while $25 million to $30 million in U.S. in 2016.
However, 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 fourth quarter and beyond.
In Oct 2016, Jazz commenced a rolling submission for its second pipeline candidate, Vyxeos, and plans to finish it in early 2017. We believe Vyxeos has multi-million dollar potential. We expect the company to update on the commercialization plans for Vyxeos at the fourth-quarter conference call.
Also at the call, focus will be on the company’s performance and 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.
Earnings Whispers
Our proven model does not conclusively show that Jazz will beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates. Unfortunately, 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 $1.65. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Jazz currently carries a Zacks Rank #3. Though the company’s favorable Zacks Rank increases the predictive power of the ESP, its 0.00% Earnings ESP makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that this have the right combination of elements to post an earnings beat this quarter.
Exelixis, Inc. (EXEL - Free Report) has an Earnings ESP of +200% and a Zacks Rank #2. The company is expected to release results on Feb 27.
Syndax Pharmaceuticals, Inc. (SNDX - Free Report) is scheduled to release results on Mar 2. The company has an Earnings ESP of +18.18% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Jazz Pharma (JAZZ) Q4 Earnings: Is a Surprise in Store?
Jazz Pharmaceuticals plc (JAZZ - Free Report) is scheduled to report fourth-quarter 2016 results on Feb 28 after the market closes.
Jazz’s shares have outperformed the Zacks classified Medical-Drugs industry so far this year. Specifically, the company’s stock gained 23.7% during the period, while the industry recorded an increase of 6.9%.
Jazz has quite an encouraging earnings track record. Last quarter, the company comfortably surpassed expectations with a positive earnings surprise of 37.58%. In fact, the company beat estimates in all the last four quarters with a positive average earnings surprise of 30.59%. Let’s see how things have shaped up for this quarter.
Jazz Pharmaceuticals PLC Price and EPS Surprise
Jazz Pharmaceuticals PLC Price and EPS Surprise | Jazz Pharmaceuticals PLC Quote
Factors at Play
Jazz expects exranings in the range of $9.90–$10.30 per share (excluding stock based compensation expenses) for 2016. It expects revenues in the range of $1.49–$1.53 billion. Total product sales are expected in the range of $1.48–$1.52 billion.
The company’s key drugs include Xyrem for cataplexy and excessive daytime sleepiness (EDS), Erwinaze for acute lymphoblastic leukemia, and Defitelio for the treatment of adult and pediatric patients with hepatic veno-occlusive disease (VOD). Jazz’s lead product, Xyrem, should continue performing well. In the third quarter, Xyrem sales rose 17.7% year over year. The company’s narcolepsy market expansion efforts include web-based disease awareness programs, utilization of the Swiss Narcolepsy Scale and an overall focus on healthcare provider education are expected to support sales of Xyrem in the fourth quarter.
Defitelio sales in the third quarter were driven mainly by its launch in the U.S. in early April. The company reported that 105 unique accounts ordered Defitileo in the third quarter, with 72% reordering since its launch. However, at the third quarter conference call, the company lowered its guidance for Defitelio/defibrotide net sales for 2016 to a range of $105 million to $120 million from a previous range of $105 million to $125 million. The company expects approximately $80 million to $90 million sales in Europe and rest of world while $25 million to $30 million in U.S. in 2016.
However, 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 fourth quarter and beyond.
In Oct 2016, Jazz commenced a rolling submission for its second pipeline candidate, Vyxeos, and plans to finish it in early 2017. We believe Vyxeos has multi-million dollar potential. We expect the company to update on the commercialization plans for Vyxeos at the fourth-quarter conference call.
Also at the call, focus will be on the company’s performance and 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.
Earnings Whispers
Our proven model does not conclusively show that Jazz will beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates. Unfortunately, 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 $1.65. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Jazz currently carries a Zacks Rank #3. Though the company’s favorable Zacks Rank increases the predictive power of the ESP, its 0.00% Earnings ESP makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that this have the right combination of elements to post an earnings beat this quarter.
Pacira Pharmaceuticals, Inc. (PCRX - Free Report) is scheduled to release results on Mar 1. The company has an Earnings ESP of +20% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exelixis, Inc. (EXEL - Free Report) has an Earnings ESP of +200% and a Zacks Rank #2. The company is expected to release results on Feb 27.
Syndax Pharmaceuticals, Inc. (SNDX - Free Report) is scheduled to release results on Mar 2. The company has an Earnings ESP of +18.18% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>