Jazz Tops Q3 Earnings & Sales Estimates, Raises '24 EPS View

Jazz Pharmaceuticals JAZZ reported third-quarter 2024 adjusted earnings of $6.61 per share, which beat the Zacks Consensus Estimate of $5.47. Earnings rose 37% year over year.Total revenues rose 9% year over year to $1.05 billion. Sales of Xywav and Epidiolex drove this upside. The reported figure beat the Zacks Consensus Estimate of $1.04 billion.Shares of Jazz were up 2% in yesterday’s after-market trading session, likely due to the better-than-expected earnings.The stock fell 9.3% year to date compared with the industry’s 3.5% decline.Image Source: Zacks Investment ResearchStay up-to-date with all quarterly releases: See Zacks Earnings Calendar.More on JAZZ’s EarningsNet product sales rose 5% year over year at $989.7 million. The reported figure beat the Zacks Consensus Estimate and our model estimates of $976 million and $971 million, respectively.Jazz recorded royalty revenues from high-sodium oxybate authorized generic (AG) of $58.2 million, which was twice the figure generated in the year-ago period. While the metric was in line with our model estimates, it beat the Zacks Consensus Estimate of $57 million.Other royalties and contract revenues rose 47% to $7.1 million in the quarter.JAZZ’s Neuroscience SegmentSales of Jazz’s neuroscience products rose 4% to $702.7 million.Net product sales for the combined oxybate business (Xyrem + Xywav) fell 2% to $446.6 million in the quarter. This combined revenue figure beat the Zacks Consensus Estimate of $431 million and our model estimates of $430 million.Sales of the sleep disorder drug Xyrem plunged 54% year over year to $58.1 million due to patients switching to Xywav and the launch of AGs last year.Xywav, a low-sodium formulation of Xyrem, recorded sales of $388.5 million in the quarter, up 17% 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 18% to $251.6 million, likely driven by geographic expansion in ex-U.S. markets. Epidiolex sales beat the Zacks Consensus Estimate and our model estimates of $248 million and $245 million, respectively.Cannabis-based mouth spray Sativex recorded sales of $4.6 million in the quarter, down 1% year over year.JAZZ’s Oncology SegmentOncology product sales increased 9% to $284.8 million.Chemotherapy drug Rylaze/Enrylaze added sales of $98.8 million in the quarter, down 6% 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 ongoing demand. The company expects revenues to normalize by early 2025.Rylaze sales missed the Zacks Consensus Estimate and our model estimates of $114 million and $115 million, respectively.Zepzelca, approved for small cell lung cancer, recorded sales worth $85.8 million in the quarter, up 10% year over year.Acute myeloid leukemia drug Vyxeos generated sales of $34.3 million, up 15% from the year-ago period’s levels.Defitelio sales rose 38% year over year to $65.8 million in the quarter.Discussion on JAZZ’s Operating CostsAdjusted selling, general and administrative (SG&A) expenses were up 6% year over year at $288.7 million due to an increase in employee compensation-related expenses.Adjusted research and development (R&D) expenses down 17% to $181 million, primarily due to a decline in clinical program costs.JAZZ’s 2024 GuidanceWhile Jazz reiterated its overall revenue guidance for 2024, the company lowered its revenue prediction for sales in the Oncology franchise.Total revenues are anticipated to be in the range of $4-$4.1 billion. The Oncology franchise is expected to record sales in the range of $1.08-$1.13 billion, down from the previous guidance of $1.10-$1.15 billion.Management maintained its revenue prediction for neuroscience sales in the range of $2.83-$2.93 billion. This guidance also includes royalty revenues from high-sodium oxybate AG, which are expected to cross $200 million.The company also revised its previously issued EPS guidance. Adjusted earnings are now expected to be in the range of $19.50-$20.60 per share, up from the previous guidance of $19.20-$20.30, primarily driven by strategic pipeline prioritization.While adjusted SG&A expenses are anticipated to be in the range of $1.19-$1.23 billion (maintained), adjusted R&D expenses are expected in the band of $790-$830 million (previously: $810-$850 million).JAZZ’s Zacks RankJazz currently has a Zacks Rank #3 (Hold).Jazz Pharmaceuticals PLC Price Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC QuoteKey Picks Among Biotech StocksSome better-ranked stocks from the sector are Amicus Therapeutics FOLD, Biogen BIIB and CRISPR Therapeutics CRSP. While FOLD and CRSP each sports a Zacks Rank #1 (Strong Buy) at present, BIIB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.In the past 60 days, estimates for Amicus Therapeutics’ 2024 EPS have moved up from 21 cents to 22 cents. EPS estimates for 2025 have increased from 49 cents to 53 cents during the same period. Year to date, shares of FOLD have lost 17.3%.FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.In the past 60 days, estimates for CRISPR Therapeutics’ 2024 loss per share have narrowed from $5.58 to $5.55. During the same timeframe, loss estimates for 2025 have improved from $4.98 to $4.94. Year to date, shares of CRSP have lost 19.6%.CRISPR Therapeutics’ earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 100.64%.In the past 60 days, estimates for Biogen’s 2024 EPS have increased from $16.12 to $16.37. EPS estimates for 2025 have improved from $17.09 to $17.15. Year to date, shares of BIIB have lost 31.6%.Biogen’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 9.99%.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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