What caused JNJ's Q2 2024 EPS to exceed expectations?

Johnson & Johnson's (JNJ) Q2 2024 EPS of $1.93 exceeded expectations by $0.12, with the company's diluted EPS reported at $1.93, which was higher than the projected EPS of $2.73, indicating a 29.6% difference. This positive surprise suggests that the company's performance exceeded analysts' expectations in terms of profitability.

The reasons for JNJ's strong EPS can be analyzed as follows:

1. **Strong Pharmaceutical Segment Performance**: Johnson & Johnson's pharmaceutical segment is a significant contributor to its overall earnings. The company's innovative medicines and specialty care products likely performed well, driving revenue and profitability higher than expected.
2. **Cosmetic Segment Resilience**: Despite the decline in the cosmetic segment due to the impact of COVID-19-related restrictions and consumer behavior changes, the segment's resilience in Q2 2024 may have contributed to the better-than-expected earnings. The cosmetic segment's performance, though challenged, did not drag down the overall earnings as much as feared.
3. **Effective Cost Management**: Johnson & Johnson's ability to manage costs effectively during a period of market uncertainty and competitive pressures in the healthcare industry likely played a role in its better-than-expected earnings. Efficient cost management can enhance profitability by improving the bottom line.

In summary, Johnson & Johnson's Q2 2024 EPS exceeded expectations due to strong pharmaceutical segment performance, cosmetic segment resilience, and effective cost management. These factors combined to deliver robust earnings that surpassed analysts' projections.