Johnson & Johnson (NYSE:JNJ) Declares Synthes $19.7 Billion Deal will Add 3-5 Cents in 2012 Earnings – JNJ, PFE, GSK, MRK

Johnson & Johnson (NYSE:JNJ), the world’s biggest health-care products corporation, reported that its $19.7 billion acquisition of Synthes Inc, the largest acquisition in the corporation’s 126-year history, would add 3 cents to 5 cents per share to 2012 earnings comprising special items.

The New Brunswick, New Jersey-based Johnson & Johnson declared in a statement on Tuesday that the company entered into accelerated repurchase deals for almost $12.9 billion in shares with Goldman Sachs Group, Inc (NYSE:GS) and JPMorgan Chase & Co (NYSE:JPM) to assist pay for the cash-and-stock acquisition. J&J earlier announced the agreement would lower earnings by 22 cents per share.

The drug maker reported that J&J would take a $1.1 billion after-tax charge during the rest of 2012 for onetime items linked with the acquisition, including restructuring and integration costs.

Shifting readers focus to broader market, let’s consider market performance of other stocks that significantly affect same sector. Pfizer Inc. (NYSE:PFE) increased +0.41% to settle at $22.19, GlaxoSmithKline plc (ADR) (NYSE:GSK) moved up +2.05% to end at $45.31 while Merck & Co., Inc. (NYSE:MRK) surged +0.99% to finish on Tuesday at $38.85.

Johnson & Johnson (NYSE:JNJ) last session volume of 26.66 million shares was surprisely lower than its average volume of 12.27 million shares. The stock after opening at $62.16 hit high price of $63.27 and then closed at $63.08 by scoring +1.55%.

The liquidity measure in recent quarter results of the company was recorded 2.69 as current ratio and on the other side the debt to equity ratio was 0.32 and long-term debt to equity ratio also remained 0.21. The Company had total cash at hand $33.85 billion and a book value per share as $22.35 in the most recent quarter.

The stock price volatility was 1.50% for a week and 1.08% for a month as well as price volatility’s Average True Range for 14 days was 0.73 and its beta remained 0.53.

JNJ generated revenue of 65.00 billion in the following twelve months and earned $10.11 billion. The Company showed a negative 15.55% in the net profit margin and as well as in its operating margin which remained 19.84%. Company’s annual sales growth for the past five year was 4.05%.

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