Morgan Stanley: Medicis Pharmaceuticals' 4Q Slightly Above Consensus

In a research report published today, Morgan Stanley said Medicis Pharmaceutical's

4Q results included operating margin upside partially offset by an unusually high tax rate. According to Morgan Stanley, “Revenues were $181M, in line with our $179M and cons' $180M. EPS were $0.56, 5% above our $0.53 and cons' $0.55. Note MRX excluded $8.9M amort. expense (both original MRX amort + new Graceway amort.) from non-GAAP EPS (as planned). Operating margin was 36.6% vs. our 29.8% estimate. Tax rate was 49.4% vs. our 39.5% estimate due to one-time Graceway acq. taxes.” Morgan Stanley maintains its Equal-weight rating on Medicis Pharmaceuticals, which closed yesterday at $33.81.