Updated from 7:10 a.m. EDTBuoyed by a Wall Street-beating second quarter and strong sales by the cholesterol drug Lipitor, Pfizer ( PFE) said Thursday it was raising its full-year financial guidance. Pfizer expects earnings this year to be about $2 a share rather than $1.93, excluding special items. Both EPS figures have been adjusted to reflect the pending sale of its nonprescription drug and consumer products business to Johnson & Johnson ( JNJ). Pfizer has declared the unit a discontinued operation, requiring it to reclassify its financial statements. The sale price is $16.6 billion, and Pfizer expects after-tax proceeds of about $13.5 billion. With the sale and its projected cash flow from operations over the next 30 months, Pfizer expects to be in possession of about $34 billion, after capital spending and dividends. The company plans to spend $17 billion over the same time period acquiring technologies and products "that will drive long-term growth," said David Shedlarz, a vice chairman. Hank McKinnell, Pfizer's chairman and CEO, said his company would look at "targeted acquisitions" in the $1 billion to $4 billion range. Pfizer reaffirmed that it would spend up to $17 billion through 2007 to repurchase stock, including $7 billion this year. "We achieved strong operating performance in the face of increased generic competition and revenue losses due to patent expirations," McKinnell said. "Pfizer is losing about one-third of its human-health revenue due to patent expirations between 2004 and 2008. Many companies could not survive such a profound loss of revenue." By early afternoon, Pfizer's stock had climbed 46 cents, or 2%, to $23.76. McKinnell said second-quarter results beat Pfizer's expectations, as well as Wall Street's consensus forecast. The company produced earnings of 50 cents, excluding one-time items, compared with the 48 cents estimated by analysts polled by Thomson First Call. "At current exchange rates, we continue to target a return to revenue growth in 2007 and average annual growth in adjusted diluted EPS over 2007 and 2008 in the high single digits," he said.