Wyeth 2Q profit falls on charges but beats views

Overseas markets helped drive growth for the company, which is seeing international sales making up the majority of its revenue for the first time in its history.

The company's profit fell to $1.12 billion, or 83 cents per share, in the April-June period, compared with profit of $1.2 billion, or 87 cents per share, during the same period a year earlier.

But excluding a $155.2 million charge primarily for work force reductions and employee severance, the company said it earned 91 cents per share. That was above the 87 cents that analysts surveyed by Thomson Financial had expected. The estimates typically exclude one-time items.

Revenue rose 5 percent to $5.95 billion from $5.65 billion a year ago. Analysts expected revenue of $5.69 billion.

"At Wyeth, we continue to focus on products that have the potential to transform our company and medicine as a result," Chairman, President and Chief Executive Bernard Poussot said in a conference call.

During the quarter, the company continued its push to position itself for growth in emerging markets, including China, and for the first time in company history has seen the bulk of its revenue come from international sales. Poussot said 54 percent of revenue came from outside the U.S. in the first half of the year.

Meanwhile, Wyeth now expects full-year profit between $3.47 and $3.55 per share, excluding charges, a boost from prior guidance of $3.35 to $3.49 per share. Analysts expect profit of $3.45 per share.

Wall Street gave the results and outlook a positive view, though some are still somewhat cautious as the company moves forward with a cost-cutting plan.

"We are encouraged by the performance, however, fundamentally, we see downside pressure on Wyeth's long-term growth rate from generic exposure, risks, and pipeline delays," said Citi analyst John Boris, in a note to investors.