Jazz Stock Gains as Q4 Earnings & Sales Surpass Expectations

Jazz Pharmaceuticals JAZZ reported fourth-quarter 2024 adjusted earnings of $6.60 per share, which beat the Zacks Consensus Estimate of $5.79. Earnings rose 31% year over year.Total revenues rose 8% year over year to $1.09 billion. Sales of Xywav and Epidiolex drove this upside. The reported figure beat the Zacks Consensus Estimate of $1.06 billion.See the Zacks Earnings Calendar to stay ahead of market-making news.Shares of Jazz rose more than 2% in pre-market today, likely due to the better-than-expected results.Year to date, the stock has gained 13% compared with the industry’s 7% growth.Image Source: Zacks Investment ResearchMore on JAZZ’s EarningsNet product sales rose 6% year over year at $1.03 billion. The reported figure beat the Zacks Consensus Estimate and our model estimate of $995 million and $992 million, respectively.Jazz recorded $55.3 million in royalty revenues from high-sodium oxybate authorized generic (AG), up 40% from the year-ago quarter’s level. However, the metric missed the Zacks Consensus Estimate of $66 million and our model estimate of $58 million.Other royalties and contract revenues rose 47% to $7.7 million in the quarter.JAZZ’s Neuroscience SegmentSales of Jazz’s neuroscience products rose 6% to $730.5 million.Net product sales for the combined oxybate business (Xyrem + Xywav) rose 1% to $450.3 million. This combined revenue figure beat the Zacks Consensus Estimate of $443 million and our model estimates of $442 million.Sales of the sleep disorder drug Xyrem plunged 54% year over year to $49.3 million due to patients switching to Xywav and the launch of AGs in 2023.Xywav, a low-sodium formulation of Xyrem, recorded sales of $401 million in the quarter, up 19% year over year. This upside can be attributed to the encouraging uptake of the drug in narcolepsy and idiopathic hypersomnia (IH) indications. This drug is currently Jazz’s most extensive product by net sales.Sales of the epilepsy drug Epidiolex/Epidyolex rose 14% to $275 million, likely driven by geographic expansion in ex-U.S. markets. Epidiolex sales beat the Zacks Consensus Estimate and our model estimate of $265 million and $255 million, respectively.Cannabis-based mouth spray Sativex recorded sales of $5.2 million in the quarter, up 1% year over year.JAZZ’s Oncology SegmentOncology product sales increased 7% to $291.8 million.Chemotherapy drug Rylaze/Enrylaze posted sales of $101.5 million, which remained flat year over year. The drug’s sales were negatively impacted due to a recent update to pediatric acute lymphoblastic leukemia (ALL) protocols regarding the timing of asparaginase administration. Management expects this to affect the ongoing demand. The company expects revenues to normalize by early 2025. Rylaze sales beat the Zacks Consensus Estimate and our model estimate of $100 million and $99 million, respectively.Zepzelca, approved for small cell lung cancer, recorded sales worth $78.3 million, which rose 6% year over year.Acute myeloid leukemia drug Vyxeos generated sales of $53.2 million, up 14% from the year-ago period’s level. Defitelio sales rose 13% year over year to $57.7 million.Sales of Ziihera, which was approved by the FDA in December 2024 for biliary tract cancer indication, added $1.1 million to the company’s top line.Discussion on JAZZ’s Operating CostsAdjusted selling, general and administrative (SG&A) expenses rose 8% year over year to $323.2 million due to an increase in employee compensation-related expenses.Adjusted research and development (R&D) expenses rose 10% to $220.9 million, primarily due to a rise in clinical program costs.Full-Year 2024 ResultsJazz reported adjusted earnings of $20.90 per share, up 14% year over year.Total revenues in the reported quarter rose 6% year over year to $4.1 billion. The top line included neuroscience and oncology net product revenues of $2.9 billion and $1.1 billion, respectively.JAZZ’s 2025 GuidanceJazz issued fresh financial guidance for the full year. Total revenues are expected to be in the range of $4.15-$4.40 billion, suggesting 5% year-over-year growth at the midpoint compared with the 2024 level. The top-line estimate is pinned at $4.33 billion.Jazz expects sales for the full year to be driven by the continued growth of Xywav, Epidiolex and its oncology portfolio. By this year’s end, management expects Epidiolex to achieve blockbuster status.While adjusted SG&A expenses are anticipated to be between $1.25 billion and $1.31 billion, adjusted R&D expenses are expected to be in the band of $720-$770 million.The effective tax rate is expected to be between 13% and 15%.The company expects 2025 adjusted earnings to be in the range of $22.50-$24.00 per share. The Zacks Consensus Estimate for the metric is pegged at $22.11 per share.JAZZ’s Zacks RankJazz currently has a Zacks Rank #3 (Hold).Jazz Pharmaceuticals PLC Price Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC QuoteOur Key Picks Among Biotech StocksSome better-ranked stocks are argenx ARGX, Day One Biopharmaceuticals DAWN and Pacira BioSciences PCRX. While ARGX and PCRX sport a Zacks Rank #1 (Strong Buy) each at present, DAWN carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Estimates for argenx’s 2025 earnings per share (EPS) have increased from $2.07 to $3.13 over the past 60 days, while the same for 2026 has increased from $9.07 to $10.85. ARGX’s shares have gained 2% year to date. argenx's earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 339.37%.Estimates for Day One Biopharmaceuticals’ loss per share have narrowed from 88 cents to 72 cents for 2025 in the past 60 days. The loss per share estimate for 2026 has narrowed from 99 cents to 97 cents in the same time frame. DAWN’s shares have lost nearly 7% year to date.Day One’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 90.70%.Estimates for Pacira BioSciences’ 2025 EPS have increased from $3.16 to $3.20 over the past 60 days, and the same for 2026 has risen from $2.79 to $3.59. PCRX’s shares have surged 33% year to date.Pacira’s earnings beat estimates in two of the trailing four quarters, missed once and met in the other, delivering an average surprise of 7.13%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jazz Pharmaceuticals PLC (JAZZ): Free Stock Analysis Report Pacira BioSciences, Inc. (PCRX): Free Stock Analysis Report argenex SE (ARGX): Free Stock Analysis Report Day One Biopharmaceuticals, Inc. (DAWN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks