Turning Point Brands (NYSE:TPB) Releases Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Turning Point Brands beat expectations in the quarter, reporting EPS of $0.76 versus the $0.68 consensus and revenue of $124.28 million versus the $115.67 million estimate. Revenue also rose 16.8% year over year.
• Modern Oral is driving growth, with gross sales up 167% and net sales up 133% year over year in Q1. The segment now accounts for 42% of total revenue, up from 21% a year ago.
• Management raised guidance for Modern Oral and introduced FY EBITDA guidance of $70 million to $90 million, but growth investments and regulatory uncertainty could pressure near-term cash flow and margins.

Turning Point Brands (NYSE:TPB - Get Free Report) released its earnings results on Thursday. The company reported $0.76 EPS for the quarter, beating analysts' consensus estimates of $0.68 by $0.08, FiscalAI reports. The firm had revenue of $124.28 million for the quarter, compared to analysts' expectations of $115.67 million. Turning Point Brands had a return on equity of 17.42% and a net margin of 11.53%.The company's quarterly revenue was up 16.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.91 earnings per share.

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

• Modern Oral accelerated sharply — gross sales +167% and net sales +133% YoY in Q1, and now represents 42% of total revenue (up from 21% a year ago) driven by D2C strength and early chain wins.
• Management raised full‑year Modern Oral guidance to $280–$300M gross and $210–$225M net and introduced FY EBITDA guidance of $70–$90M, signaling confidence in scale and profitability potential.
• The company is front‑loading growth investments — planning $80–$105M in 2026 sales & marketing, plus increased salesforce and merchandising spend — which drove Q1 negative free cash flow (‑$27.4M) and a wider EBITDA range that may pressure near‑term cash and margins.
• Regulatory and operational risk remains — the PMTA review timing is uncertain and the Louisville manufacturing ramp is being synchronized with PMTA outcomes, creating potential delays to domestic production, margin improvement, and inventory benefits.

Turning Point Brands Trading Up 4.2%

NYSE:TPB traded up $3.80 during midday trading on Friday, hitting $94.02. The stock had a trading volume of 941,219 shares, compared to its average volume of 483,999. Turning Point Brands has a one year low of $65.80 and a one year high of $146.90. The company has a market capitalization of $1.82 billion, a price-to-earnings ratio of 31.98 and a beta of 0.93. The stock has a 50-day moving average of $87.65 and a 200 day moving average of $101.44. The company has a quick ratio of 4.12, a current ratio of 5.56 and a debt-to-equity ratio of 0.79.

Turning Point Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Friday, June 19th will be paid a $0.08 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $0.32 annualized dividend and a yield of 0.3%. Turning Point Brands's dividend payout ratio is 10.22%.

Insiders Place Their Bets

In other Turning Point Brands news, CFO Andrew Flynn sold 2,000 shares of the company's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $97.57, for a total transaction of $195,140.00. Following the completion of the sale, the chief financial officer owned 9,443 shares in the company, valued at $921,353.51. This represents a 17.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 5.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Turning Point Brands

A number of hedge funds have recently bought and sold shares of TPB. Empowered Funds LLC purchased a new stake in Turning Point Brands during the fourth quarter worth $27,000. Kemnay Advisory Services Inc. purchased a new stake in Turning Point Brands during the fourth quarter worth $27,000. Advisory Services Network LLC purchased a new stake in Turning Point Brands during the third quarter worth $28,000. Caitong International Asset Management Co. Ltd purchased a new stake in Turning Point Brands during the third quarter worth $28,000. Finally, Aster Capital Management DIFC Ltd purchased a new stake in Turning Point Brands during the fourth quarter worth $77,000. Hedge funds and other institutional investors own 96.12% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Oppenheimer reaffirmed an "outperform" rating and set a $130.00 target price on shares of Turning Point Brands in a research note on Wednesday, January 14th. Needham & Company LLC raised Turning Point Brands from a "hold" rating to a "buy" rating and set a $125.00 price objective on the stock in a research note on Friday. Zacks Research cut Turning Point Brands from a "hold" rating to a "strong sell" rating in a research note on Monday, March 2nd. Weiss Ratings cut Turning Point Brands from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, April 21st. Finally, Wall Street Zen cut Turning Point Brands from a "buy" rating to a "hold" rating in a research note on Saturday, January 17th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $118.75.

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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