Turning Point Brands (NYSE:TPB) Issues Quarterly Earnings Results

Key Points

• Turning Point Brands beat earnings expectations: Quarterly EPS was $0.23 versus the $0.12 analyst consensus, while revenue increased 22.6% year over year.
• Modern Oral drove growth: Gross sales rose 149% and net sales climbed 128% to $68 million, prompting the company to raise its 2026 Modern Oral net sales guidance to $260–$270 million.
• Profitability faced near-term pressure: Adjusted EBITDA fell 50% to $15 million as the company increased investments in sales, marketing, staffing and brand building, although full-year EBITDA guidance remained $70–$90 million.

Turning Point Brands (NYSE:TPB - Get Free Report) released its earnings results on Tuesday. The company reported $0.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.12 by $0.11, FiscalAI reports. Turning Point Brands had a net margin of 11.53% and a return on equity of 16.54%. The company's quarterly revenue was up 22.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.98 EPS.

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

• Positive Sentiment: Modern Oral remained the key growth engine, with gross sales up 149% and net sales up 128% year over year to $68 million; the company raised its 2026 Modern Oral net sales guidance to $260–$270 million.
• Positive Sentiment: Management expects chain-store count to rise 70% year over year by year-end, with shelf resets already beginning at several large retailers; ALP is gaining traction in independent and regional accounts and may enter larger-chain discussions in the fall and spring reset periods.
• Negative Sentiment: Consolidated adjusted EBITDA fell 50% year over year to $15 million as the company increased sales, marketing, commercial staffing, and brand-building investments; full-year EBITDA guidance was maintained at $70–$90 million despite stronger Modern Oral sales.
• Neutral Sentiment: The company remains focused on completing its PMTA process and expects to launch U.S. manufacturing by year-end subject to regulatory approval, potentially supporting long-term gross margins of approximately 70%; it also expects to spend an additional $3–$5 million on PMTA work in 2026.

Turning Point Brands Stock Performance

TPB traded up $0.31 on Tuesday, hitting $80.73. The company's stock had a trading volume of 157,138 shares, compared to its average volume of 427,566. Turning Point Brands has a 12 month low of $65.80 and a 12 month high of $146.90. The firm has a market cap of $1.56 billion, a P/E ratio of 27.20 and a beta of 0.92. The company has a quick ratio of 4.05, a current ratio of 5.87 and a debt-to-equity ratio of 0.76. The company's 50 day simple moving average is $82.69 and its 200-day simple moving average is $94.18.

Turning Point Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 18th will be issued a $0.08 dividend. The ex-dividend date of this dividend is Friday, September 18th. This represents a $0.32 annualized dividend and a yield of 0.4%. Turning Point Brands's dividend payout ratio (DPR) is 10.88%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on TPB shares. Wall Street Zen lowered shares of Turning Point Brands from a "sell" rating to a "strong sell" rating in a research note on Sunday. Compass Point set a $103.00 price objective on Turning Point Brands in a report on Tuesday, July 21st. Weiss Ratings downgraded Turning Point Brands from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 2nd. BTIG Research initiated coverage on Turning Point Brands in a research note on Tuesday, July 21st. They issued a "buy" rating and a $103.00 target price on the stock. Finally, Needham & Company LLC raised Turning Point Brands from a "hold" rating to a "buy" rating and set a $125.00 price target on the stock in a research report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $113.50.

Insider Transactions at Turning Point Brands

In other Turning Point Brands news, CAO Brian Wigginton sold 4,000 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $91.67, for a total transaction of $366,680.00. Following the sale, the chief accounting officer owned 9,230 shares in the company, valued at $846,114.10. This represents a 30.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 5.40% of the stock is owned by insiders.

Institutional Trading of Turning Point Brands

A number of institutional investors have recently added to or reduced their stakes in TPB. Empowered Funds LLC purchased a new position in Turning Point Brands during the 4th quarter valued at about $27,000. Kemnay Advisory Services Inc. purchased a new stake in Turning Point Brands in the 4th quarter worth approximately $27,000. Advisory Services Network LLC bought a new position in Turning Point Brands in the 3rd quarter valued at $28,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Turning Point Brands during the 3rd quarter valued at $28,000. Finally, Aster Capital Management DIFC Ltd bought a new stake in Turning Point Brands during the fourth quarter valued at $77,000. Hedge funds and other institutional investors own 96.12% of the company's stock.

Turning Point Brands Company Profile

Turning Point Brands, Inc NYSE: TPB is a U.S.-based consumer products company focused on the manufacture, marketing and distribution of smokeless tobacco, vaping and cigar products. Headquartered in Old Hickory, Tennessee, the company serves retail outlets across all 50 states through a direct-store-delivery network and select third-party distributors. Turning Point Brands operates two reporting segments—Smokeless Products and Cigar—and leverages its logistics capabilities to offer a broad portfolio of brands and SKUs.

In its Smokeless Products segment, Turning Point Brands produces moist smokeless tobacco under leading brand names such as Grizzly, Kodiak and Stoker's.

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