High Expectations For Jazz Pharmaceuticals

Shares of Jazz Pharmaceuticals plc (NASDAQ: JAZZ) were up 1 percent on Thursday, ahead of the announcement of the company’s first quarter financial results.

According to Estimize, experts and the crowd both expect to see more than 30 percent year-over-year earnings growth from the $1.61 per share (on revenue of $246.9 million) reported in the first quarter of 2014. For the current quarter, the Street anticipates consensus earnings of $2.13 per share on revenue of $309.82 million, while the crowd projects consensus earnings of $2.17 per share on revenue of $310.67 million.

The current estimates imply a decline of more than 10 percent from last quarter’s earnings of $2.44 per share, on revenue of $328.14 million.

The chart above features a history of Jazz’s actual earnings compared to estimates over the past couple of years. Although there is no clear trend, the company has managed to beat expectations over the last three quarters.

A second graph illustrates the evolution of consensus estimates over time. While the crowd’s sentiment remained pretty much flat, the Street has been becoming increasingly constructive on Jazz as earnings got closer.

Related Link: Why This Trader Is Worried About Jazz Pharmaceuticals

Diverging Views

In a recent research note, analysts at Oppenheimer took a technical look at the stock market “to determine whether investors should follow the old Wall Street adage ‘sell in May and go away.’

According to Oppenheimer, 2015 is setting up to be an exception to the rule,”

In the healthcare sector, Oppenheimer's pick was Jazz Pharmaceuticals.