Medicis Pharmaceutical Misses Where it Counts

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Medicis Pharmaceutical (NYS: MRX) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Medicis Pharmaceutical met expectations on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Medicis Pharmaceutical notched revenue of $184.7 million. The 14 analysts polled by S&P Capital IQ predicted a top line of $186.6 million on the same basis. GAAP reported sales were 0.8% lower than the prior-year quarter's $182.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.56. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.61 per share on the same basis. GAAP EPS of $1.42 for Q3 were 284% higher than the prior-year quarter's $0.37 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 90.5%, 130 basis points better than the prior-year quarter. Operating margin was 31.7%, 620 basis points better than the prior-year quarter. Net margin was 32.6%, 1,950 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $178.7 million. On the bottom line, the average EPS estimate is $0.53.

Next year's average estimate for revenue is $719.3 million. The average EPS estimate is $2.32.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Medicis Pharmaceutical is outperform, with an average price target of $38.00.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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