Jazz Pharma Earnings: A Mixed Picture

Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ) reported higher profit for the third quarter as revenue showed growth. Jazz Pharmaceuticals is a specialty pharmaceutical company, which is focused on developing and commercializing innovative products to meet unmet medical needs in neurology and psychiatry.

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Jazz Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Net income for Jazz Pharmaceuticals Inc. rose to $33.2 million (55 cents per share) vs. $32.5 million (69 cents per share) in the same quarter a year earlier. This marks a rise of 2.2% from the year-earlier quarter.

Revenue: Rose more than twofold to $175.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jazz Pharmaceuticals Inc. fell short of the mean analyst estimate of $1.20 per share. It beat the average revenue estimate of $102.5 million.

Quoting Management: “During the third quarter, we completed the integration of EUSA Pharma’s U.S. commercial business, and our R&D group is working to coordinate worldwide Erwinaze and Asparec development activities,” said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals. “I am very pleased that we have been able to complete two important acquisitions and a divestiture of our non-core women’s health business this year, while continuing to deliver solid results fueled by growing sales of key products.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 94.7%, with the biggest boost coming in the most recent quarter when revenue rose more than twofold from the year earlier quarter.

Gross margin shrank 13.3 percentage points to 81.4%. The contraction appeared to be driven by increased costs, which rose 736.4% from the year earlier quarter while revenue rose more than twofold.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 7 cents, and in the first quarter, it was ahead by one cent.

Net income has increased 41.9% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than twofold from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.33 a share to $1.31 over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $4.41 per to share to $4.45.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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