Core Viewpoint - Jazz Pharmaceuticals is expected to report first-quarter 2025 earnings on May 6, with sales estimated at $978.6 million and earnings at $4.61 per share, reflecting a positive trend in earnings estimates for 2025 [1][3]. Financial Performance - Jazz Pharmaceuticals has exceeded earnings expectations in three of the last four quarters, with a trailing four-quarter average earnings surprise of 3.20% and a notable earnings surprise of 13.99% in the last quarter [3]. - The company currently has an Earnings ESP of -2.75% and a Zacks Rank of 3 (Hold) [5]. Revenue Segments - The company reports financial figures under two segments: Neuroscience and Oncology. The consensus estimate for neuroscience product sales is $649 million, while the estimate for oncology sales is $269 million [7][10]. - Sales of the sleep disorder drug Xywav are projected at $372 million, with expectations of continued growth due to its uptake in narcolepsy and idiopathic hypersomnia [8]. - Epidiolex sales are expected to rise to $234 million, driven by geographic expansion, while sales of the legacy drug Xyrem are anticipated to decline [9]. Oncology Performance - Sales of the chemotherapy drug Rylaze are expected to be impacted by recent updates to treatment protocols, with estimates pegged at $103 million [11]. - Other oncology drugs, including Zepzelca, Vyxeos, and Defitelio, are expected to grow at a mid-single-digit percentage during the quarter [11]. Stock Performance and Valuation - Jazz Pharmaceuticals' shares have declined about 6% year-to-date, compared to a 4% decline in the industry, and are currently trading below their 50-day and 200-day moving averages [13]. - The stock is trading at a price-to-sales (P/S) ratio of 1.76, lower than the industry average of 1.97 and below its five-year mean of 2.70, indicating a valuation discount [16]. Investment Thesis - The company has a diversified portfolio in neuroscience and oncology, although pipeline setbacks, such as the discontinuation of suvecaltamide development, pose concerns [18]. - Strategic acquisitions have bolstered the pipeline, with five oncology products marketed and an FDA decision on a sixth product expected by August 18 [19][20]. - Despite challenges, the rising EPS estimates for 2025 and a robust cash reserve of $3.0 billion at the end of 2024 provide reasons to remain invested in Jazz Pharmaceuticals [21].
Buy, Sell or Hold JAZZ Stock? Key Tips Ahead of Q1 Earnings