Turning Point Brands tops Q2 sales estimates on modern oral product growth
TPB•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 $125.00, about 55.4% above its August 3 closing price of $80.42
- The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 24 three months ago
Key financial details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Beat | $142.96 mln | $129.22 mln (6 Analysts) |
| Q2 Adjusted EPS | Miss | $0.23 | $0.43 (4 Analysts) |
| Q2 Gross Profit | $93.70 mln | ||
| Q2 Operating Income | $16.71 mln |
What drove the quarter
- Modern oral growth - Co said strong Modern Oral sales, driven by investments in distribution and brand development, accounted for nearly half of total net sales
- Higher sales and marketing spend - SG&A expenses rose 91% due to Modern Oral-related sales and marketing investments and increased outbound freight costs
- - Gross profit was boosted by a one-time tariff refund; adjusted for this, gross profit was $81.5 mln
