Overview

* Turning Point Q3 net sales rise 31.2% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats consensus, reflecting robust performance

* Company raises full-year 2025 Adjusted EBITDA and Modern Oral sales guidance

Outlook

* Turning Point raises 2025 Adjusted EBITDA guidance to $115.0 - 120.0 mln

* Company increases full-year Modern Oral sales guidance to $125.0 - 130.0 mln

Result Drivers

* MODERN ORAL GROWTH - Modern Oral sales surged 628% yr/yr to $36.7 mln, now 30.8% of total sales

* STOKER'S SEGMENT - Stoker's segment net sales rose 80.8% yr/yr, driven by Modern Oral and MST growth

* ZIG-ZAG DECLINE - Zig-Zag segment net sales fell 10.5% yr/yr, but excluding Clipper, rose mid-single-digits sequentially

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $118.97 $111.40

mln mln (5

Analysts

)

Q3 Beat $1.27 $0.87 (3

Adjusted Analysts

EPS )

Q3 Net $23.75

Income mln

Q3 Gross $70.42

Profit mln

Q3 $25.88

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 $109.00, about 12.7% above its November 4 closing price of $95.18

* The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

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(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.)