Pfizer Beats EPS Target by a Penny

Sales of smoking-cessation drug Chantix increased just 3%, reflecting a 35% decline in the U.S. Pfizer recently updated Chantix's U.S. label to include additional safety information.

A May 2008 report by the Institute for Safe Medication Practices said the drug was "suspected in various adverse drug event reports of causing a wide spectrum of injuries, including serious accidents and falls, potentially lethal cardiac rhythm disturbances, severe skin reactions, acute myocardial infarction, seizures, diabetes, psychosis, aggression and suicide." Subsequently, the Federal Aviation Administration banned the use of the drug by pilots and air traffic controllers.

Looking ahead, Pfizer is guiding for earnings of $2.35 to $2.45 a share on revenue of $47 billion to $49 billion in 2008.

The company tightened its guidance for adjusted cost of sales as a percentage of revenue to between 15% and 15.5% from 14.5% to 15.5% and reduced its prediction for the effective tax rate on adjusted income to a range of 21.5% to 22% from a previous range of 22% to 22.5%.