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Jazz Pharma (JAZZ) Q1 Earnings: Stock Likely to Disappoint?
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Jazz Pharmaceuticals plc (JAZZ - Free Report) is scheduled to report first-quarter 2017 results on May 9, after the market closes.
Jazz’s shares have significantly outperformed the Zacks classified Medical-Drugs industry so far this year. Specifically, the stock gained 46.4% during the period, while the industry recorded an increase of 5.3%.
Jazz has quite an encouraging earnings track record. Last quarter, the company comfortably surpassed expectations with a positive earnings surprise of 15.76%. In fact, the company beat estimates in all the last four quarters with an average positive earnings surprise of 25.34%.
Let’s see how things have shaped up for this quarter.
Factors at Play
At the first-quarter conference call, 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., patent litigations related to Xyrem and the company’s business development plans are also expected to draw attention.
Xyrem should deliver strong performance in the first quarter. The company is also striving to expand Xyrem’s label and is currently conducting a phase II/III EXPRESS study in children and adolescents who have cataplexy with narcolepsy. In Apr 2017, the company announced positive top-line efficacy results from the study.
Defitelio (veno-occlusive disease) was launched in the U.S. in early Apr 2016 and the sales drug have picked up pace. The company reported that 117 unique accounts ordered Defitileo in fourth-quarter 2016, with 71% reordering since its launch. At the fourth-quarter 2016 conference call, the company issued its guidance for Defitelio/defibrotide net sales for 2017 in the range of $130–$150 million. The company expects $45–$55 million sales in U.S. in 2017. Meanwhile, in Jan 2017 the company initiated a phase III clinical study on Defitelio for the potential prevention of veno-occlusive disease (VOD) in high-risk adult and pediatric patients.
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 first quarter and beyond.
On the other hand, in Apr 2017, the company announced positive efficacy results from a global multicenter, phase III TONES 2 study, in adult patients with excessive sleepiness associated with narcolepsy. In the study, JZP-110 demonstrated highly statistically significant improvement in the co-primary endpoints.
In Oct 2016, Jazz commenced a rolling submission for its second pipeline candidate, Vyxeos, which it finished in early Apr 2017. We believe Vyxeos has multi-million dollar potential. We expect the company to update on Vyxeos at the first-quarter conference call.
Earnings Whispers
Our proven model does not conclusively show that Jazz will beat on earnings 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) to be able to beat estimates. Unfortunately, this 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 $1.32. 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 #4 (Sell). As it is, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Here are some health care stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.
ImmunoGen, Inc. is scheduled to release results on May 5. The company has an Earnings ESP of +8.33% and a Zacks Rank #3.
FIBROGEN INC (FGEN - Free Report) is scheduled to release results on May 8. The company has an Earnings ESP of +23.81% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Jazz Pharma (JAZZ) Q1 Earnings: Stock Likely to Disappoint?
Jazz Pharmaceuticals plc (JAZZ - Free Report) is scheduled to report first-quarter 2017 results on May 9, after the market closes.
Jazz’s shares have significantly outperformed the Zacks classified Medical-Drugs industry so far this year. Specifically, the stock gained 46.4% during the period, while the industry recorded an increase of 5.3%.
Jazz has quite an encouraging earnings track record. Last quarter, the company comfortably surpassed expectations with a positive earnings surprise of 15.76%. In fact, the company beat estimates in all the last four quarters with an average positive earnings surprise of 25.34%.
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 first-quarter conference call, 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., patent litigations related to Xyrem and the company’s business development plans are also expected to draw attention.
Xyrem should deliver strong performance in the first quarter. The company is also striving to expand Xyrem’s label and is currently conducting a phase II/III EXPRESS study in children and adolescents who have cataplexy with narcolepsy. In Apr 2017, the company announced positive top-line efficacy results from the study.
Defitelio (veno-occlusive disease) was launched in the U.S. in early Apr 2016 and the sales drug have picked up pace. The company reported that 117 unique accounts ordered Defitileo in fourth-quarter 2016, with 71% reordering since its launch. At the fourth-quarter 2016 conference call, the company issued its guidance for Defitelio/defibrotide net sales for 2017 in the range of $130–$150 million. The company expects $45–$55 million sales in U.S. in 2017. Meanwhile, in Jan 2017 the company initiated a phase III clinical study on Defitelio for the potential prevention of veno-occlusive disease (VOD) in high-risk adult and pediatric patients.
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 first quarter and beyond.
On the other hand, in Apr 2017, the company announced positive efficacy results from a global multicenter, phase III TONES 2 study, in adult patients with excessive sleepiness associated with narcolepsy. In the study, JZP-110 demonstrated highly statistically significant improvement in the co-primary endpoints.
In Oct 2016, Jazz commenced a rolling submission for its second pipeline candidate, Vyxeos, which it finished in early Apr 2017. We believe Vyxeos has multi-million dollar potential. We expect the company to update on Vyxeos at the first-quarter conference call.
Earnings Whispers
Our proven model does not conclusively show that Jazz will beat on earnings 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) to be able to beat estimates. Unfortunately, this 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 $1.32. 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 #4 (Sell). As it is, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Here are some health care stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Conatus Pharmaceuticals Inc. is scheduled to release results on May 4. The company has an Earnings ESP of +57.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
ImmunoGen, Inc. is scheduled to release results on May 5. The company has an Earnings ESP of +8.33% and a Zacks Rank #3.
FIBROGEN INC (FGEN - Free Report) is scheduled to release results on May 8. The company has an Earnings ESP of +23.81% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>