For the quarter ended March 31, Pfizer earned 61 cents a share, excluding one-time items. The consensus estimate of analysts polled by Thomson First Call was 53 cents. First-quarter revenue was $12.66 billion, compared with the average forecast of $12.94 billion and down from $13.09 billion a year ago.

Using generally accepted accounting principles, Pfizer earned $4.11 billion, or 56 cents a share, in the quarter, compared with $301 million, or 4 cents a share, for the first quarter of 2005. Last year's results included a $1.2 billion pretax charge for suspending sales of the arthritis drug Bextra and a $2.2 billion tax charge for repatriating earnings from foreign subsidiaries.

Despite sales that were lighter than expected, Karen Katen, president of Pfizer's human health operations, said the quarter's results "mark the beginning of a year that will be characterized by the transition to the next-generation Pfizer." In late afternoon, trading, Pfizer's stock was up 3 cents to $24.96.

The company said it was keeping its full-year earnings prediction of $2.00 a share, excluding special items. First Call's average estimate is $2.01. After accounting for all items, the company is expecting a profit of $1.56 to $1.60.

David Shedlarz, a vice chairman, reaffirmed the company's outlook that average annual growth in earnings per share, excluding special items, will be in the "high single digits" for 2007 and 2008.

"We continue to expect 2006 revenues to be comparable to those in 2005," he added, with longtime products and new drugs "substantially replacing" sales lost from products whose patents have ended or will expire. Last year's revenue was $51.3 billion.

The biggest generic-drug impact will affect the antibiotic Zithromax, whose U.S. patent ran out late last year, and the antidepressant Zoloft, which loses patent protection at the end of the second quarter.