Jazz Pharmaceuticals' Earnings Beat Last Year's by 70%

Seth Jayson, The Motley Fool
Updated

Jazz Pharmaceuticals (NAS: JAZZ) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Jazz Pharmaceuticals beat expectations on revenue and whiffed on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.

Gross margin improved, operating margin dropped, and net margin contracted.

Revenue details
Jazz Pharmaceuticals recorded revenue of $83.5 million. The five analysts polled by S&P Capital IQ wanted to see sales of $80.9 million on the same basis. GAAP reported sales were 57% higher than the prior-year quarter's $53.4 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.90. The two earnings estimates compiled by S&P Capital IQ forecast $1.03 per share on the same basis. GAAP EPS of $0.79 for Q4 were 41% higher than the prior-year quarter's $0.56 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 95.4%, 440 basis points better than the prior-year quarter. Operating margin was 45.1%, 270 basis points worse than the prior-year quarter. Net margin was 44.9%, 90 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $100.7 million.

Next year's average estimate for revenue is $482.2 million. The average EPS estimate is $2.90.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 186 members out of 258 rating the stock outperform, and 72 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Jazz Pharmaceuticals a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jazz Pharmaceuticals is buy, with an average price target of $53.50.

The drug and healthcare investing landscape is littered with also-rans and a few major winners. Is Jazz Pharmaceuticals the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement