Is JNJ's Q3 2024 EPS growth sustainable long-term?

**Johnson & Johnson's (JNJ) Q3 2024 EPS growth may not be fully sustainable long-term**, based on several factors:

1. **Recent Earnings Estimates Reductions**: Zacks Research has reduced its Q3 2024 EPS estimates for JNJ, from $2.70 to $2.22. This downward adjustment suggests that the company's earnings may not meet initial expectations, potentially indicating challenges or uncertainties in sustaining high EPS growth.
2. **Challenges in Maintaining Margins**: Despite robust revenue growth, JNJ has faced challenges in maintaining margins. The net margin for Q3 2024 was 16.04%, which is relatively lower than some previous quarters. Margins pressures can impact the sustainability of EPS growth if not addressed.

3. **Analyst Sentiments and Price Target Adjustments**: Several analysts have issued reports with price target adjustments and ratings, such as Cantor Fitzgerald's "overweight" rating with a $215.00 target price. However, other analysts have downgraded or adjusted their price targets, such as Daiwa America's downgrade from a "strong-buy" to a "hold" rating. These mixed analyst sentiments suggest that while there is potential for growth, it may not be universally seen as sustainable or certain.
4. **Strategic Focus and External Factors**: JNJ's strategic focus on sustainable growth in M&A and the prioritization of innovation are positive signs. However, external factors such as competitive pressures, regulatory environments, and market conditions can impact the sustainability of EPS growth.

In conclusion, while JNJ's Q3 2024 EPS growth is notable, the sustainability of this growth over the long term is uncertain and may depend on the company's ability to address margin challenges, sustain innovation, and navigate competitive and regulatory landscapes effectively.