Jazz Pharmaceuticals Inc. Earnings Cheat Sheet: Revenue Grows Again by Double-Digits

Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ) reported net income above Wall Street’s expectations for the third quarter. Jazz Pharmaceuticals is a specialty pharmaceutical company, which is focused on developing and commercializing innovative products to meet unmet medical needs in neurology and psychiatry.

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Jazz Pharmaceuticals Earnings Cheat Sheet for the Third Quarter

Results: Net income for Jazz Pharmaceuticals Inc. rose to $32.5 million (69 cents per share) vs. $13.2 million (32 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 63.8% to $73.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: JAZZ reported adjusted net income of 94 cents per share. By that measure, the company beat the mean estimate of 84 cents per share. Analysts were expecting revenue of $72 million.

Quoting Management: “This strong quarter reflects the continued success of Xyrem as an important medical therapy for patients experiencing the two key symptoms of narcolepsy,” said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals. “In the quarter, we also took a significant step forward towards strengthening our platform for growth and diversifying our product portfolio by entering into an agreement to combine with Azur Pharma. We continue to expect the transaction to close in the first quarter of 2012.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 50.5%, with the biggest boost coming in the most recent quarter when revenue rose 63.8% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the second quarter, by 3 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Gross margins grew 1.6 percentage points to 94.7%. The growth seemed to be driven by increased revenue, as the figure rose 63.8% from the year earlier quarter while costs rose 26.2%.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 96 cents per share, an increase from 83 cents sixty days ago. At $3.08 per share, the average estimate for the fiscal year has risen from $2.88 sixty days ago.

Competitors to Watch: Cephalon, Inc. (NASDAQ:CEPH), Forest Laboratories, Inc. (NYSE:FRX), Transcept Pharmaceuticals, Inc. (NASDAQ:TSPT), Pfizer Inc. (NYSE:PFE), GlaxoSmithKline plc (NYSE:GSK), Eli Lilly & Co. (NYSE:LLY), Abbott Laboratories (NYSE:ABT), Caraco Pharmaceutical Laboratories Ltd. (AMEX:CPD), Watson Pharmaceuticals, Inc. (NYSE:WPI), and McKesson Corporation (NYSE:MCK).

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(Source: Xignite Financials)