The 10-second takeaway
For the quarter ended March 31 (Q1), Jazz Pharmaceuticals beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share was unchanged.
Margins contracted across the board.
Jazz Pharmaceuticals reported revenue of $108.4 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $102.6 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $50.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.91. The seven earnings estimates compiled by S&P Capital IQ forecast $0.90 per share. GAAP EPS of $0.48 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 90.1%, 440 basis points worse than the prior-year quarter. Operating margin was 30.6%, 1,380 basis points worse than the prior-year quarter. Net margin was 25.5%, 1,740 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $121.9 million. On the bottom line, the average EPS estimate is $1.08.
Next year's average estimate for revenue is $543.4 million. The average EPS estimate is $4.49.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 191 members out of 260 rating the stock outperform, and 70 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Jazz Pharmaceuticals a green thumbs-up, and 25 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 $61.67.
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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 of Motley 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.