The drugmaker reports that earnings fell to $2.9 billion, or 42 cents a share, from $9.5 billion, or $1.32 a year earlier, when Pfizer reported a big gain from the sale of its consumer health business to Johnson & Johnson. Excluding special items, Pfizer earned 52 cents per share, and nalysts on average had forecast 47 cents, according to various estimates.

More interesting, Pfizer raised the lower end of its 2008 earnings outlook, which excludes special items, to $2.35 a share, although the outside range remains unchanged at $2.45. “We are continuing to strengthen our senior leadership team and enhance accountability. We are shifting investments into high-priority therapeutic areas, revamping our R&D operations and acquiring new compounds and technologies that we believe are especially promising. These actions taken together have made Pfizer a stronger company than it was a year ago, and we look forward to continued progress in 2008,” says ceo Jeff Kindler in a statement.

Total pharma sales, however, rose only 2 percent to $11.9 billion. And Lipitor sales fell 2 percent for the year, the first year-over-year decline since the drug was introduced.