Jazz (JAZZ) Up 24.5% Since Last Earnings Report: Can It Continue?

Core Insights - Jazz Pharmaceuticals reported strong Q3 2025 earnings, with adjusted EPS of $8.13, surpassing estimates by 24% year over year [2][3] - Total revenues reached $1.13 billion, a 7% increase year over year, also exceeding consensus estimates [2][3] Financial Performance - Net product sales increased nearly 8% year over year to $1.06 billion, beating estimates [3] - Royalty revenues from high-sodium oxybate authorized generic decreased by 9% year over year to $53 million, missing estimates [3] - Neuroscience product sales rose 10% to $774 million, with Xywav sales up 11% to over $431 million [4][5] - Sales of Epidiolex/Epidyolex increased by 20% to about $303 million, driven by volume growth [5] - Oncology product sales rose 1% to about $288 million, with Rylaze/Enrylaze sales at $100 million, also up 1% [7][8] Cost and Guidance - Adjusted SG&A expenses rose 59% year over year to $460 million, primarily due to litigation settlements [11] - Jazz revised its 2025 revenue guidance to $4.18-$4.28 billion, indicating a 3% year-over-year increase at the midpoint [12] - Adjusted EPS guidance was significantly raised to $7.65-$8.45 from the previous $4.80-$5.60 [14] Market Outlook - The consensus estimate for Jazz has shifted upward by 8.54% in the past month, indicating positive investor sentiment [15] - Jazz holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [17] Industry Comparison - Jazz is part of the Zacks Medical - Biomedical and Genetics industry, which has seen Regeneron report a slight revenue increase of 0.9% year over year [19] - Regeneron is expected to post a year-over-year EPS decline of 11.8% for the current quarter, reflecting broader industry challenges [20]