Jazz Pharmaceuticals, Inc. - Momentum

Jazz Pharmaceuticals, Inc. (JAZZ) recently spiked to a new multi-year high on the company’s third consecutive earnings surprise. With estimates on the rise and a bullish growth projection, this Zacks #1 rank stock sings in the key of momentum.

Company Description

Jazz Pharmaceuticals specializes in developing products for neurology and psychiatry primarily in the United States. The company was founded in 2003 and has a market cap of $1.12 billion.

Although JAZZ has been trending higher since early November, shares got an extra boost on March 7 after the company reported strong Q4 results that came in ahead of expectations.

Fourth-Quarter Results

Revenue for the period was up 39% from last year to $53.4 million. Earnings also looked good, coming in at 56 cents, 4% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 12% over the last three quarters.

The strong performance was led by the company’s Xyrem, a narcolepsy and sleeping disorder drug, with sales up 36% from last year to $43 million. Full-year sales for Xyrem were up 47% from last year. Sales for its other leading product, Luvox, increased to $9.4 million from $5.7 million.

Financial Profile

With 2010 marking Jazz’s first full year of profitability, the company’s financial profile has been on the upswing. Cash and equivalents are up $16 million from last year to $45 million while total debt fell $76 million to $48 million.

Estimates

We saw some very bullish movement in estimates off the good quarter, with the current year adding 52 cents to $2.57 while the next-year estimate jumped $1.04 to $3.35, a bullish 30% growth projection.

Valuation

But in spite of the gains, the valuation picture still looks great, with a PEG ratio )PE/Growth) of .36%, well below the benchmark for value of 1.

12-Month Chart

On the chart, shares got a boost off the good quarter to hit a new multi-year high at $29.73. Take a look at the chart below.