For the three months ended March 31, the New York drugmaker earned 38 cents a share, excluding items, on revenue of $4.5 billion. Analysts polled by Thomson First Call had forecast 23 cents, excluding items, on revenue of $4.33 billion.

On a GAAP basis, the company earned $690 million, or 35 cents a share. Last year it earned $714 million, or 36 cents, on revenue of $4.67 billion.

Bristol-Myers Squibb also lifted its 2007 earnings per share prediction to a range of $1.30 to $1.40, excluding special items, thanks to its first-quarter results and a lower expected tax rate. The previous guidance had been $1.20 to $1.30. Analysts polled by Thomson First Call were looking for $1.27.

However, the stock was down 59 cents, or 2%, to $29.11 on heavier-than-average trading. The stock fell as low as $28.38.

James Cornelius, who was named permanent CEO Thursday, said the first quarter was aided by rising prescriptions for the anticoagulant Plavix, its best-selling drug. He was appointed interim CEO in September.

Plavix has been the center of attention ever since Bristol bungled an effort to prevent generic versions from reaching the U.S. market until mid-2011. As a result, Canada's Apotex sold cheap copies for three weeks in August before being blocked by a court order.