Alternative smoking accessories maker Turning Point's Q2 sales beat estimates

Overview

• Turning Point Q2 net sales rise 25.1%, beating analyst expectations

• Adjusted EPS for Q2 exceeds analyst estimates, per LSEG data

• Co raises full-year guidance for Modern Oral sales and adjusted EBITDA

Outlook

• Company raises 2025 Modern Oral sales guidance to $100.0 – 110.0 mln

• Turning Point increases 2025 Adjusted EBITDA guidance to $110.0 – 114.0 mln

Result Drivers

• MODERN ORAL GROWTH - Modern Oral segment net sales surged 651% year-over-year, now accounting for 26% of total net sales

• STOKER'S SEGMENT - Stoker's segment net sales increased 62.9%, driven by strong growth in Modern Oral sales and mid-single-digit growth in MST

• ZIG-ZAG CHALLENGES - Zig-Zag segment net sales decreased 6.9% year-over-year, attributed to changes in product mix

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "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 $91.00, about 10.8% above its August 5 closing price of $81.14

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw6ZYVGba