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