NEW YORK (CNN/Money) - Drugmaker Merck reported improved fourth quarter earnings that met Wall Street expectations for the period, and said it expects to top current profit forecasts for 2003.

The company earned net income of $1.89 billion, or 83 cents a diluted share. That's up from $1.86 billion, or 81 cents a share, in the year-earlier period and in line with the consensus forecast of analysts surveyed by earnings tracker First Call.

Revenue rose to $13.9 billion from $12.6 billion a year ago, which beat First Call's forecast of $13.7 billion.

The company said it expects to earn between $3.40 and $3.47 a share in 2003, which is above the First Call consensus forecast of $3.39 a share, as well as the $3.14 a share it earned in both 2002 and 2001.

Shares of Merck (MRK: Research, Estimates), one of four components of the Dow Jones industrial average to report results Tuesday, lost $1.79 to $51.76 a share in Monday trading ahead of the report.