Pfizer Bumps Up Forecast

Updated from 3:10 p.m. EST

Pfizer(PFE Quote) nudged up its earnings forecast Thursday, saying it will wring a bit more profit out of its business this year than the drug giant had previously expected.

The company raised its earnings prediction to at least $2.05 a share, before items, from the prior estimate of about $2. Pfizer attributed the revised outlook to a "favorable trend in revenues and lower costs" in the fourth quarter.

On average, analysts polled by Thomson First Call had forecast $2.02, excluding one-time items. Pfizer said full-year earnings should be no less than $1.68 a share when all items are counted.

However, the company is sticking to its previous prediction that earnings per share will grow by a high-single digit percentage for 2007 and 2008. The company also reaffirmed that revenue will be unchanged for the next two years and comparable to what it expects for 2006.

The guidance came as Pfizer was unveiling its R&D efforts to analysts and investors at the company's research facility in Groton, Conn. The presentation provided more information on earlier-stage research than the company had offered in the past, a reflection of new CEO Jeffrey Kindler's desire for greater communication with investors.

Just two days ago, Pfizer said it would dismiss 20% of its 11,000-member U.S. sales force by year-end as part of a comprehensive cost-cutting plan. More details will be revealed in January.