Jazz Pharmaceuticals Q4 Results Miss Estimates, Guides 2014 EPS In Line

(RTTNews) - Specialty pharmaceutical company Jazz Pharmaceuticals Plc. (JAZZ) reported Tuesday a profit for the fourth quarter that plunged from last year, which included a hefty income tax benefit and income from discontinued operations. Meanwhile, quarterly revenues increased 28 percent, driven by strong sales of Xyrem and Erwinaze.

Both adjusted earnings per share and quarterly revenues missed analysts' expectations. The company also provided earnings guidance for the full-year 2014, in line, but annual revenues outlook just above view.

Separately, the company announced CFO Kathryn Falberg has resigned, effective March 9, 2014, to pursue other interests. Falberg has agreed to serve as a consultant to the company during a transition period.

The company has also named Matthew Young, senior vice president of corporate development, to succeed Falberg. Young will report directly to Chairman and CEO Bruce Cozadd. Young joined Jazz in early 2013 after working in investment banking for about 20 years.

The Dublin, Ireland-based company reported net income of $55.29 million or $0.90 per share for the fourth quarter, down from $200.55 million or $3.28 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $106.13 million or $1.72 per share, compared to $93.95 million or $1.53 per share in the year-ago quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $1.78 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased 28 percent to $235.77 million from $183.70 million in the same quarter last year, but missed thirteen Wall Street analysts' consensus estimate of $238.12 million.

Net product sales for the quarter increased to $233.80 million from $181.94 million in the prior-year quarter, driven by strong sales of Xyrem and Erwinaze.

Xyrem net sales surged 45 percent to $164.18 million from $113.51 million last year. Average number of active Xyrem patients during the quarter was about 11,250.

Erwinaze net sales increased 32 percent to $43.50 million from $34.42 million in the year-ago quarter.

"2013 was an outstanding year as we delivered strong top-line growth, generated significant cash flow and executed on our corporate development strategy," Chairman and CEO Bruce Cozadd said in a statement.

For fiscal 2013, the company reported net income of $216.31 million or $3.51 per share, lower than $288.59 million or $4.79 per share in the prior year. Excluding items, adjusted net income for the year was $388.26 million or $6.31 per share, compared to $290.39 million or $4.82 per share in the year ago.

Total revenues for the full year surged 49 percent to $872.42 billion from $585.98 million in the previous year.

Analysts expected the company to report full-year 2013 earnings of $6.37 per share on annual revenues of $874.88 million.

Looking ahead to fiscal 2014, the company expects adjusted earnings in a range of $8.00 to $8.25 per share on projected revenues between $1.10 billion and $1.16 billion. Street is currently looking for full-year 2014 earnings of $8.07 per share on annual revenues of $1.08 billion.

"Our existing products delivered strong growth and, with our recently announced acquisitions, we look forward to launching Defitelio® (defibrotide) in Europe during 2014 and to advancing the development of new treatments for patients with unmet medical needs through our expanded pipeline," Cozadd added.

JAZZ closed Tuesday's regular trading session at $174.98, up $3.23 or 1.88% on a volume of 1.70 million shares. However, the stock lost $10.48 or 5.99% in after-hours trading.