Mylan Laboratories ( MYL) reported first-quarter results that stomped analysts' predictions, and the generic drugmaker raised its fiscal-year guidance owing to the growth of a new product and the stabilization of its core business. The company said Wednesday that it expects to earn $1.35 to $1.55 a share this year, excluding special items. Previously, Mylan had forecast $1.20 to $1.40 for the year ending March 31. The Wall Street consensus is $1.18 a share. Mylan also predicted full-year sales of $1.39 billion to $1.46 billion, compared with the $1.35 billion average estimate from analysts polled by Thomson First Call. Shares of Mylan were recently up 72 cents, or 3.6%, to $20.97. Volume was nearly five times as heavy as a normal entire session. For the first quarter, Mylan reported earnings per share of 37 cents, excluding one-time items. The consensus was 28 cents. On a GAAP basis, Mylan earned $75.6 million, or 35 cents a share, on revenue of $356.1 million. The quarter includes a 2-cent charge for stock-based compensation, and Mylan believes full-year charges will amount to 6 cents. Mylan earned $42.9 million, or 16 cents a share, on revenue of $323.4 million in the year-ago quarter, which included 10 cents in charges related to legal matters, restructuring and other one-time expenses. Robert Coury, Mylan's vice chairman and CEO, said the latest quarter produced the highest quarterly EPS in the company's history. Revenue gains were led by a skin patch that delivers the painkiller fentanyl, a generic version of Duragesic from Johnson & Johnson ( JNJ). The patch is the only generic competitor to Duragesic, but Coury noted that the upgraded full-year guidance "still reflects the potential for additional competition" for fentanyl this year. Mylan's outlook also is improving because "we are not seeing the erosion in our core generic business that we had originally forecasted," Coury said. "Instead, we are experiencing price stabilization on many of our products along with significant earnings increases."