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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $116.63 $105.80

mln mln (4

Analysts

)

Q2 Beat $0.98 $0.81 (2

Adjusted Analysts

EPS )

Q2 Net $16.96

Income mln

Q2 Gross $66.62

Profit mln

Q2 $26.33

Operatin mln

g income

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 ( TPB ) 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:

(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.)