Turning Point Brands (NYSE:TPB) Releases Earnings Results, Beats Expectations By $0.21 EPS

Turning Point Brands (NYSE:TPB) released its quarterly earnings data on Monday. The company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.21, FiscalAI reports. Turning Point Brands had a net margin of 5.08% and a return on equity of 6.79%. The firm had revenue of $151.10 million for the quarter, compared to analyst estimates of $146.68 million. During the same quarter in the prior year, the business earned $1.27 earnings per share. Turning Point Brands’s quarterly revenue was up 27.0% on a year-over-year basis.

Here are the key takeaways from Turning Point Brands’ conference call:

• Modern Oral continued to drive growth: gross sales rose 114% year over year and net sales increased 103%. The segment contributed 49% of company revenue, versus 31% a year earlier.
• Turning Point expects chain-store count to grow more than 70% in 2026 as FRE expands in larger retail chains and ALP builds brick-and-mortar distribution. Management said both brands are still in the early stages of their retail rollouts.
• Adjusted EBITDA fell 41% year over year to $18 million, reflecting higher sales and marketing investment; management also cited potential quarter-to-quarter swings from timing and other costs. The company maintained full-year adjusted EBITDA guidance of $70 million to $80 million.
• Zig-Zag segment net sales declined 15% year over year to $37 million. Management described the business as stable but noted that some sales occur in channels where performance is harder to track.
• U.S. nicotine-pouch manufacturing remains targeted for 2027 and depends partly on FDA timing. The applications needed for the Louisville facility have been submitted, and the company is preparing a separate submission that would include U.S. manufacturing.

Turning Point Brands Trading Down 0.4%

Shares of NYSE:TPB opened at $62.99 on Wednesday. The company has a quick ratio of 4.16, a current ratio of 5.67 and a debt-to-equity ratio of 0.65. The company’s 50-day moving average price is $64.85 and its 200 day moving average price is $85.21. The company has a market cap of $1.22 billion, a PE ratio of 45.32 and a beta of 1.08. Turning Point Brands has a fifty-two week low of $54.17 and a fifty-two week high of $146.90.

Turning Point Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 8th. Investors of record on Friday, December 18th will be given a $0.08 dividend. The ex-dividend date is Friday, December 18th. This represents a $0.32 annualized dividend and a yield of 0.5%. Turning Point Brands’s dividend payout ratio (DPR) is currently 23.02%.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Needham & Company LLC lowered their target price on Turning Point Brands from $125.00 to $95.00 and set a “buy” rating for the company in a report on Tuesday. Oppenheimer dropped their price target on Turning Point Brands from $130.00 to $90.00 and set an “outperform” rating on the stock in a research report on Tuesday, September 22nd. Weiss Ratings reissued a “hold (c)” rating on shares of Turning Point Brands in a report on Friday, August 28th. Compass Point set a $116.00 price objective on Turning Point Brands in a research report on Monday, August 10th. Finally, BTIG Research restated a “buy” rating on shares of Turning Point Brands in a research report on Monday, August 10th. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $101.00.

About Turning Point Brands

Turning Point Brands, Inc. is a U.S.-based manufacturer, marketer and distributor of branded consumer products, with a portfolio focused on tobacco and nicotine products and related accessories. Its products are sold primarily in the United States, with distribution in international markets as well. The company’s Zig-Zag Products business includes rolling papers, wraps, cones and other products associated with the Zig-Zag brand. Its Stoker’s Products business offers products such as loose-leaf chewing tobacco and moist snuff, along with nicotine pouches sold under brands including Stoker’s and FRE.