The 10-second takeaway
For the quarter ended March 31 (Q1), Medicis Pharmaceutical beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Medicis Pharmaceutical reported revenue of $201.7 million. The 18 analysts polled by S&P Capital IQ anticipated a top line of $185.0 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $164.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.60. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.42 per share. GAAP EPS of $0.09 for Q1 were 70% lower than the prior-year quarter's $0.30 per share. (The prior-year quarter included -$0.11 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 89.6%, 170 basis points worse than the prior-year quarter. Operating margin was 3.7%, 2,320 basis points worse than the prior-year quarter. Net margin was 2.7%, 900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $193.9 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $847.6 million. The average EPS estimate is $2.71.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Medicis Pharmaceutical is outperform, with an average price target of $38.67.
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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 of Motley 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.