Turning Point Brands beats Q3 profit expectations on strong demand

Overview

• U.S. branded consumer products maker's Q3 net sales rose 27%, beating analyst expectations

• Adjusted diluted EPS for Q3 beat analyst expectations

• Net income and adjusted EBITDA declined due to higher sales and marketing investments

Outlook

• Company reaffirms 2026 Modern Oral gross sales guidance of $330-$350 mln

• Company reaffirms 2026 Modern Oral net sales guidance of $260-$270 mln

• Turning Point Brands reaffirms 2026 adjusted EBITDA forecast of $70-$80 mln

Result Drivers

• MODERN ORAL GROWTH - Co said strong growth in Modern Oral products drove overall sales, with segment net sales more than doubling year-over-year

• PRODUCT MIX SHIFT - Co said gross margin declined in Stoker’s segment due to a higher proportion of Modern Oral sales, which carry lower margins

• HIGHER SG&A - Co attributed increased expenses to investments in Modern Oral sales and marketing and higher freight costs

Company press release: ID:nBwb2SlJ4a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the tobacco peer group is "buy"

• Wall Street's median 12-month price target for Turning Point Brands, Inc. is $116.00, about 76.1% above its November 6 closing price of $65.88

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 30 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)