TPB

Interested in Turning Point Brands, Inc.? Here are five stocks we like better. Second-quarter sales rose 23% to $143 million, driven by Modern Oral, but adjusted EBITDA fell 50% to $15 million as Turning Point increased sales, marketing and retail investments and faced Zig-Zag weakness. Modern Oral net sales surged 128% year over year to $68 million, accounting for 48% of company revenue. The company raised its 2026 Modern Oral gross-sales forecast to $330 million-$350 million and net-sales outlook to $260 million-$270 million. Turning Point plans to expand retail distribution and its sales force, begin U.S. manufacturing by year-end pending regulatory approval, and maintained full-year adjusted EBITDA guidance of $70 million-$90 million despite continued nicotine-pouch investment. Turning Point Brands (NYSE:TPB) reported second-quarter 2026 sales growth led by its Modern Oral nicotine pouch business, while increased spending on sales, marketing and retail execution weighed on adjusted EBITDA. Consolidated net sales rose 23% from a year earlier to $143 million. Chief Financial Officer Andrew Flynn said reported gross profit was $94 million, including a tariff refund that affected the quarter. Excluding the out-of-period cost-of-goods impact related to that refund, adjusted gross profit increased 22% year over year to $81 million, representing 57% of sales. → No Hangover: Revisiting Microsoft One Week After Earnings Adjusted EBITDA declined 50% from the prior-year period to $15 million, or an 11% margin. Flynn attributed the decline to higher sales and marketing investments, softness in Zig-Zag and the company’s strategy of investing behind nicotine pouch growth, partly offset by accelerated Modern Oral growth. President and Chief Executive Officer Graham Purdy said Modern Oral gross sales increased 149% year over year and 26% sequentially, while net sales rose 128% from a year ago and 32% sequentially. The company attributed the gains to expanded retail distribution for its FRE and ALP brands, as well as direct-to-consumer sales. → MarketBeat Week in Review – 08/03 - 08/07 Modern Oral generated $68 million in net revenue during the quarter and $89 million in gross revenue. The business accounted for 48% of consolidated net sales, compared with 26% in the second quarter of 2025. The Stoker’s segment, which includes Modern Oral and heritage tobacco products, posted net sales of $108 million, up 55% year over year and representing 75% of company sales. Heritage Stoker’s brand revenue declined 1% to $39 million, as share growth in moist smokeless tobacco was partly offset by expected declines in loose-leaf tobacco. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Adjusted gross profit in the Stoker’s segment rose 41% to $61 million, though adjusted gross margin fell 600 basis points to 57%. Flynn said the lower margin reflected higher penetration in chain accounts. Purdy said the company was encouraged by the early customer response to its Stoker’s Proud MST product, launched earlier this year. He described Stoker’s as the “only truly premium product for value-oriented consumers” in the segment. The company said it expects its chain-store count to rise 70% year over year by the end of 2026. Purdy said shelf resets have begun at several large retail accounts and are expected to be fulfilled largely through the remainder of the year, though national-chain resets can require lengthy implementation periods. Chief Revenue Officer Summer Frein said sales representatives are selling both ALP and FRE, with ALP currently focused primarily on independent retailers and, in some cases, regional chains. The company expects to bring ALP into discussions with larger chain retailers during the fall reset season and into the spring. Frein also said Turning Point has begun a phased expansion of ALP into select European markets. Purdy said the company expects to work with international partners that assume regulatory and sales responsibilities, rather than building sales forces outside the U.S. Turning Point is increasing its sales force by about 50% in 2026 to support product availability, merchandising, shelf placement and customer service at new accounts. Purdy said that after the initial build-out, the business should be able to scale without comparable increases in selling, general and administrative expenses. The company remains on track, subject to regulatory approval, to begin U.S. manufacturing by year-end. Management said domestic production is tied to regulatory considerations and the company’s ongoing premarket tobacco product application, or PMTA, process with the Food and Drug Administration. Once fully scaled, Turning Point expects U.S. manufacturing to support gross margins of about 70%. Turning Point raised its 2026 Modern Oral gross sales outlook to $330 million to $350 million, from prior guidance of $280 million to $300 million. It also increased its net sales forecast for the business to $260 million to $270 million, from $210 million to $225 million previously. The company maintained full-year adjusted EBITDA guidance of $70 million to $90 million, including increased nicotine pouch investments. Flynn said the company’s investments in commercial teams, marketing sponsorships and in-store merchandising are intended to build durable brands, though they are expected to temporarily pressure earnings. Budgeted 2026 capital expenditures remain $4 million to $5 million, excluding Modern Oral projects. Turning Point expects to spend an additional $3 million to $5 million in 2026 to support its PMTA applications. Second-quarter free cash flow was $26 million, and the company ended the period with $268 million in cash. Flynn said free cash flow benefited from an $18 million tariff refund. During the quarter, Turning Point also raised $60 million of equity to support its Modern Oral strategy. Zig-Zag segment net sales declined 4% sequentially to $35 million. The segment generated reported gross profit of $23 million and adjusted gross profit of $20 million, equal to 57% of net sales and flat sequentially. Purdy said Zig-Zag’s results were in line with expectations, while Frein said the company is refining its product pipeline and using its expanding sales force to broaden distribution. The company cited its “Life’s Fast, Burn Slow” campaign and said its brand-building efforts contributed to Zig-Zag’s strongest 4/20 weekend in its history. Management said it views the nicotine pouch market as being in the early stages of a longer-term shift away from cigarettes. Purdy added that positive regulatory developments for white nicotine pouches, including recent product authorizations and modified-risk news cited during the call, were favorable for the category, while the company remains focused on its own PMTA process and brand development. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Turning Point Brands Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Turning Point Brands (TPB) came out with quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.17%. A quarter ago, it was expected that this company would post earnings of $0.68 per share when it actually produced earnings of $0.76, delivering a surprise of +11.76%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Turning Point Brands, which belongs to the Zacks Tobacco industry, posted revenues of $142.96 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.51%. This compares to year-ago revenues of $116.63 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Turning Point Brands shares have lost about 25.8% since the beginning of the year versus the S&P 500's gain of 11%. While Turning Point Brands has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Turning Point Brands was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.46 on $134.15 million in revenues for the coming quarter and $1.97 on $526.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Tobacco is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Universal Corp. (UVV), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This leaf tobacco merchant is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -34.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Universal Corp.'s revenues are expected to be $587 million, down 1.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Turning Point Brands, Inc. (TPB) : Free Stock Analysis Report Universal Corporation (UVV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Consolidated Net Sales: $143 million, up 23% year-over-year. Gross Profit: $94 million as reported; $81 million adjusted for tariff refund, up 22% year-over-year. Adjusted Gross Margin: 57% of net sales. SG&A: $77 million, up $21 million sequentially. Adjusted EBITDA: $15 million, down 50% year-over-year, at an 11% margin. Stokers Segment Net Sales: $108 million, up 55% year-over-year, representing 75% of consolidated net sales. Modern Oral Net Sales: $68 million, up 128% year-over-year; gross revenue of $87 million, up 149% year-over-year. Modern Oral Revenue Share: 48% of consolidated net sales, up from 26% in Q2 2025. Heritage Stokers Brands Net Revenue: $39 million, down 1% year-over-year. Stokers Adjusted Gross Profit: $61 million, up 41% year-over-year; gross margin down 600 basis points to 57%. Zigzag Segment Net Sales: $35 million, down 4% sequentially. Zigzag Adjusted Gross Profit: $20 million, 57% of net sales, flat sequentially. Free Cash Flow: $26 million, positively impacted by an $18 million tariff refund. Cash Position: $268 million at quarter-end. Equity Raised: $60 million to support Modern Oral strategic objectives. 2026 Modern Oral Guidance: Gross sales raised to $330 million-$350 million; net sales raised to $260 million-$270 million. 2026 EBITDA Guidance: Maintained at $70 million-$90 million. 2026 CapEx Guidance: $4 million-$5 million, excluding Modern Oral projects. Warning! GuruFocus has detected 4 Warning Sign with ADUS. Is TPB fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Modern oral segment delivered exceptional growth, with gross and net sales up 149% and 128% year-over-year, respectively, and now accounts for 48% of total revenue. The company raised its full-year 2026 modern oral gross sales guidance to $330-$350 million, reflecting strong momentum and confidence in continued growth. Stokers segment net sales increased 55% year-over-year, driven by modern oral growth, and the segment now represents 75% of consolidated net sales. The company is on track to increase its sales force by approximately 50% this year, which will support expanded retail distribution and future scalability. Management expects to achieve gross margins of approximately 70% once US manufacturing is fully scaled, which will significantly reduce COGS over time. The company has a strong cash position of $268 million and generated $26 million in free cash flow in the quarter, supporting strategic investments. Early results from the ALP brand in retail and international expansion into select European markets are positive, indicating additional growth opportunities. Adjusted EBITDA declined 50% year-over-year to $15 million, with margins down to 11%, due to increased sales and marketing investments and softness in Zigzag. Zigzag segment net sales decreased 4% sequentially, indicating continued weakness in the heritage business. Gross margin in the Stokers segment declined 600 basis points year-over-year to 57%, driven by higher chain penetration and associated costs. The company expects near-term earnings pressure as it continues to invest heavily in brand building, sales force expansion, and infrastructure. The PMTA process remains resource-intensive with uncertain timing, and the company expects to spend an additional $3-$5 million in 2026 on these applications. The launch of US manufacturing is subject to regulatory approval and is not expected until the end of the year, delaying potential cost savings. The promotional and slotting fee environment remains competitive, and the company anticipates continued investment in shelf placement and visibility, which could pressure margins. Q: How are conversations with C-store chains progressing, and should we expect additional wins in the second half of 2026 or wait for the spring reset season? A: Summer Frein (Chief Revenue Officer) stated that after strong progress in the spring with large chains, conversations with other chains will continue into the fall, which is typically when reset seasons pick up again. She anticipates continued strong conversations and potential new placements during that period. Q: Can you provide color on the timing and outlook for potential domestic manufacturing, and is it tied to the PMTA process? A: Graham Purdy (CEO) explained that while the infrastructure for U.S. manufacturing is being laid down, there is a regulatory aspect to qualifying domestic production. The company is prioritizing the PMTA process first and preparing to move quickly on domestic production once there is a positive outlook. Andrew Flynn (CFO) added that the long-term gross profit potential with U.S. manufacturing is approximately 70%. Q: Given the strong Modern Oral sales performance, what is driving the relatively flat EBITDA guidance, and how will expenses be leveraged in the second half? A: Andrew Flynn (CFO) noted that the company is investing in durable brands, which temporarily depresses earnings due to high sales and marketing costs. He expressed confidence in the EBITDA guidance and stated that EBITDA is anticipated to grow over time as the company matures and leverages these investments over a larger revenue base. Q: What is the go-to-market strategy for the new international expansion into Europe? A: Graham Purdy (CEO) confirmed that the international strategy differs significantly from the U.S. approach. The company plans to find partners internationally to handle regulatory and sales burdens, with no plans to ramp up a sales force outside the United States. Q: Were there any shipment timing impacts in Q2 that could affect Q3 trends, and are you seeing continued momentum in expanded doors or replenishments? A: Graham Purdy (CEO) stated there was nothing out of the ordinary in Q2 regarding shipment timing. He expressed excitement about connecting marketing investments with consumer retail for the Free brand and noted early positive results for ALP in its initial store placements. Q: What is your anticipation for the promotional environment over the next 12 months, given increased investment from peers? A: Graham Purdy (CEO) welcomed the promotional environment, noting that large manufacturers' investments bring new consumers into the category. He emphasized that Turning Point Brands is focused on investing in shelf placement, retail visibility, and brand equity building rather than intense promotional activity, aiming to build long-term premium potential for its product portfolio. Q: Can you explain the dynamics behind the lower gross-to-net sales spread in Modern Oral and what is driving the improvement? A: Graham Purdy (CEO) attributed the tighter spread to several factors: strong e-commerce sales which have a different gross-to-net profile, the addition of ALP in independent retail environments which are less intensive on spread, and growing reorders from chain accounts. These factors combined are helping to improve the gross-to-net dynamics. Q: Can you provide more color on the makeup of the notable store adds in Q2, and are large chains showing interest in carrying ALP earlier than anticipated? A: Summer Frein (Chief Revenue Officer) noted that the field sales organization is primarily focused on independents and regional chains for ALP, with solid progress so far. She indicated that ALP will be introduced into larger chain account conversations during the fall reset period and into the spring, expressing excitement about the brand's early traction. Q: Given the strong velocity of your brands, has this changed slotting fee discussions with existing or new accounts? A: Summer Frein (Chief Revenue Officer) stated that the promotional and slotting fee environment was consistent in the spring, and she anticipates it will remain similar into Q4. She noted it is early to predict future changes, but the company will apply learnings from selling Free to its ALP conversations. Q: What does a competitor's recent MRTP designation mean for the Modern Oral category and your PMTA applications? A: Graham Purdy (CEO) viewed the FDA's positive news on white pouches as great for the category. He reiterated that the company's focus remains on building brands and working through the PMTA process, and he believes Turning Point Brands is well-positioned to win as consumers continue to enter the category. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 2026 Modern Oral Gross Revenue increased 149% to $87.0 million and Net Sales increased 128% to $68.4 million. Accounting for 48% of total company net sales, up from 26% in Q2 2025 Raising FY 2026 Modern Oral Gross and Net Sales guidance LOUISVILLE, Ky., August 04, 2026--(BUSINESS WIRE)--Turning Point Brands, Inc. ("TPB" or "the Company") (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, today announced financial results for the second quarter ended June 30, 2026. Q2 2026 Financial Highlights(All results reflect comparisons to prior-year period) Total Consolidated Net Sales increased 22.6% to $142.9 million Gross Profit increased 40.6% to $93.7 million driven by Modern Oral growth and a tariff refund; adjusting for the out of period COGS related to the tariff refund, gross profit was $81.5 million Net Income decreased 75.2% to $3.6 million Adjusted EBITDA decreased 50.0% to $15.2 million inclusive of strategic sales and marketing investments (see Schedule A for a reconciliation to Net Income) Diluted EPS of $0.18 and Adjusted Diluted EPS of $0.23 compared to $0.79 and $0.98 respectively, in the same period one year ago (see Schedule B for a reconciliation to Diluted EPS) "We delivered another strong quarter, highlighted by continued growth in Modern Oral," said Graham Purdy, President and CEO. "We believe our investments in retail distribution, commercial capabilities and brand development are translating into stronger consumer adoption and expanding market access for both FRE and ALP. The progress we're making today positions us to capitalize on the continued shift in nicotine consumption toward modern oral to maximize long-term shareholder value." Stoker’s Products Segment (75% of total net sales in the quarter) For the second quarter, Stoker’s segment net sales increased 54.5% from the prior year to $107.6 million, driven by triple-digit growth in Modern Oral net sales. For the quarter, Stoker’s segment gross profit increased 63.3% from the prior year to $71.1 million. Adjusting for the out of period COGS related to a tariff refund, gross profit increased 40.7% to $61.2 million year-over-year. Adjusted gross profit as a percentage of net sales decreased to 56.9% for the three months ended June 30, 2026, from 62.5% for the three months ended June 30, 2025, due to higher chain penetration. Zig-Zag Products Segment (25% of total net sales in the quarter) For the second quarter, Zig-Zag segment net sales decreased 3.5% to $35.4 million compared to the first quarter 2026. For the quarter, Zig-Zag segment gross profit decreased 2.1% from the prior year to $22.6 million. Adjusting for the out of period COGS related to the tariff refund, gross profit was $20.3 million. Adjusted gross profit as a percentage of net sales increased to 57.3% for the three months ended June 30, 2026, from 49.1% for the three months ended June 30, 2025, driven primarily by product mix. Performance Measures in the Second Quarter Investment in the quarter focused on sales and marketing efforts to support distribution and brand building. In the second quarter, consolidated selling, general and administrative ("SG&A") expenses increased 91.1% from the prior year to $76.9 million, inclusive of Modern Oral-related sales and marketing investments and increased outbound freight costs. As of June 30, 2026, ending cash was $268.3 million and net debt was $31.7 million, inclusive of approximately $59.6 million of equity raised during the quarter to support long term strategic objectives. The company’s total liquidity is $339.0 million, which includes $70.7 million of availability on an asset backed revolving credit facility. 2026 Outlook Projected full year Modern Oral Gross Sales of $330-$350 million up from $280-$300 million Projected full year Modern Oral Net Sales of $260-$270 million up from $210-$225 million Projected full Year Adjusted EBITDA of $70-90 million, inclusive of investment in Modern Oral sales, marketing, and trade promotions Earnings Conference Call As previously disclosed, a conference call with the investment community to review TPB’s financial results has been scheduled for 9:00 a.m. Eastern on Tuesday, August 4, 2026. Investment community participants should dial in 10 minutes ahead of time using the toll-free number (833) 461-5787 (International Dial-Ins) and follow the audio prompts after typing in the event ID: 335968790. A live listen-only webcast of the call will be available on the Events and Presentations section of the investor relations portion of the Company website (www.turningpointbrands.com). A replay of the webcast will be available on the site two hours following the call. Non-GAAP Financial Measures In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release includes certain non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Adjusted Operating Income (Loss). A reconciliation of these non-GAAP financial measures accompanies this release. Also note that a reconciliation of forward-looking non-GAAP measures, including EBITDA, to the most directly comparable GAAP measures is not provided because comparable GAAP measures for such measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. About Turning Point Brands, Inc. Turning Point Brands, Inc. (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients through its iconic brand portfolio, including Zig-Zag®, Stoker’s®, FRE®, and ALP®. TPB’s products are available in more than 220,000 retail outlets in North America and on sites such as www.zigzag.com, www.frepouch.com, and www.alppouch.com. For the latest news and information about TPB and its brands, please visit www.turningpointbrands.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the "SEC") and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, those included in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995. This press release contains TPB’s preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management and are subject to completion of TPB's customary quarter-end closing and review procedures and third-party review. As a result, TPB's reported information in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding TPB's financial condition and results of operations for the quarter ending June 30, 2026 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of TPB's full second quarter 2026 results when such results are disclosed by TPB in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Financial Statements Follow on Subsequent Pages Non-GAAP Financial Measures To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, we use non-U.S. GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income (Loss). We believe Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income (Loss) are used by management to compare our performance to that of prior periods for trend analyses and planning purposes and are presented to our board of directors. We believe that EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Adjusted Operating Income (Loss) are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance. We define "EBITDA" as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization. We define "Adjusted EBITDA" as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define "Adjusted Net Income" as net income excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define "Adjusted Diluted EPS" as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define "Adjusted Operating Income (Loss)" as operating income (loss) excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. EBITDA, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Operating Income (Loss) exclude significant expenses that are required by U.S. GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate this non-U.S. GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures. Note that a reconciliation of forward-looking non-GAAP measures, including EBITDA, to the most directly comparable GAAP measures is not provided because comparable GAAP measures for such measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804137470/en/ Contacts Investor Contacts Turning Point Brands, [email protected]

Both readings are true at once, and the gap between them is the real question for anyone weighing the shares. Altria (MO) trades around $67.90, roughly 9% below its 52-week high of $74.92, after returning 22% over the trailing twelve months. Over the trailing three months it returned 1.1% against 4.2% for the S&P 500. On earnings it sits well below the market, at 14.2 times earnings against 24.4 for the S&P 500. On sales the order flips: 5.5 times revenue against 3.4 for the index. How Can One Stock Be Below The Market On Earnings And Above It On Sales? Because far less is lost between the top line and the bottom than at the average company. Operating margin runs at 60% against 18.4% for the S&P 500, and net margin of 39% against 12.9% for the index leaves roughly $8.0 billion. The business converts about 46% of revenue into operating cash flow versus 22% for the market. The two multiples are one fact seen twice: at a 39% net margin, 14.2 times earnings is 5.5 times sales. What Is Growing Behind That Margin? Not much, on the top line. Revenue has shrunk at a 0.4% average annual rate over the last three years, against 5.9% growth for the S&P 500. Revenue of $20.4 billion over the trailing twelve months is barely changed from a year earlier, and in the second quarter of 2026 it grew 1.2% to $5.4 billion. Profitability sits far above the market, on a top line that does not grow. The Cigarette Business Is Doing The Heavy Lifting In the second quarter of 2026 adjusted diluted earnings per share rose 2.8% to $1.48. Smokeable products carried it: adjusted operating companies income grew 2.4% to $3 billion at a 65% margin, as price realization of 4.5% ran against inventory-adjusted domestic cigarette volumes that fell 4.5%. The company estimates industry cigarette volumes fell 5%, a fourth straight quarter of moderating declines, and management has narrowed full-year 2026 guidance to adjusted EPS of $5.61 to $5.72, lifting the low end. Marlboro's overall retail share fell 1.5 share points from a year earlier as discount retail share grew 2.6 share points, while Marlboro held 60% of the premium segment. By management's own account the consumer remains under pressure from inflation and elevated gas prices. What The Nicotine Pouch Push Costs Right Now Oral tobacco is where the transition is being paid for. Adjusted operating companies income there fell 8% in the second quarter of 2026, and reported on! shipment volume was 49.9 million cans, down 4.2% from a year earlier, while on! PLUS has reached 120,000 stores. The company puts that segment profit decline down to on! PLUS trial investment and a difficult prior year comparison, and the volume decline to trade inventory movements. Reported profit fell in the quarter, with lower nicotine pouch sales offsetting some of the cigarette growth. The counterweight is share: on! retail share reached 8.6%, up 0.8 share points sequentially, with flavor extensions due in the fourth quarter of 2026. What Has To Hold For The Cash To Keep Coming None of this resolves into a verdict. The margin is the entire case for the multiple, so watch whether smokeable adjusted operating companies income margin holds near 65% while price realization keeps pace with volume decline. The other half is whether the oral segment's 8% profit decline is the price of a launch or the shape of the business. And the payout rests on that cash: about $3.6 billion of dividends in the first half of 2026, with debt at 1.9 times EBITDA. Our five-factor stock scorecard scores those pieces against one another. Owning One Tobacco Franchise Is Still Owning One Category A business that turns close to half its revenue into cash is a rare thing, and it is still one business in one category, facing one stretched consumer and one long secular decline. Concentration is the risk that never shows up in a multiple. That is the case for a system rather than a single name: the Trefis High Quality portfolio is a rules-based group of stocks, rebalanced on evidence rather than conviction. It has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Philip Morris just posted a stellar quarter, but instead of raising its forecast, it’s plowing the cash into its U.S. business, and the reason why dominated the call. Philip Morris International (PM) stock is trading near its 52-week high, rewarding investors with strong returns. So when the company reported a blowout second quarter, with organic revenue up 8% and operating income up 11%, the natural expectation was a guidance raise. Instead, management held its full-year forecast steady, and the entire earnings call Q&A pivoted to one central question: is the company’s plan to plow that outperformance into its U.S. ZYN business an offensive move from a position of strength, or a costly defensive scramble? A Beat-and-Hold Is The New Beat-and-Raise The most pointed challenge from analysts centered on that decision to maintain guidance. A strong first half that doesn’t lift the full-year outlook implies a weaker second half, a new cost, or both. It’s the kind of math that makes shareholders nervous, and it was the first issue raised. Management’s answer was direct: this is a strategic choice. The outperformance from the international and combustible businesses created the “additional capacity to invest.” After what the company called “several quarters of frustration” in the U.S., it sees a perfect window to act. With a pipeline of new ZYN products, a major new marketing campaign, and recent favorable regulatory news, management believes it is the “right moment to accelerate U.S. investment.” The response framed the spending not as a problem to be fixed, but as an opportunity to be seized. The Price Answer Was More Strategy Than Number The follow-up concern was what “investment” really means for ZYN. The word can be a corporate euphemism for profit-crushing price cuts to regain market share. Analysts pressed on how the company plans to optimize ZYN’s premium positioning in a competitive market. The answer was more confident than specific on the numbers, but clear on the strategy. Management repeatedly stated that ZYN “is and will remain the premium leader of the market.” The mechanism for competing on price appears to be through new products, not by discounting the flagship brand. The company is launching its ZYN Ultra line at a “lower per-pouch price,” allowing it to fight for value-conscious consumers without devaluing its core offering. It’s a plan to segment the market rather than surrender its high-end pricing. What To Watch: U.S. Share Or U.S. Margin? In the end, management made a convincing case for why it’s spending more in the U.S. The international business is a powerful engine, and reinvesting its excess profits into the biggest growth market makes strategic sense. The company is funding this push from strength, not weakness. What remains an open question is how efficiently that capital will be spent. The bull case now rests on execution. The one thing to watch next quarter is the U.S. segment's numbers. A simple uptick in ZYN’s market share won’t be enough to settle the debate. The real proof will be whether that share gain comes with stable or expanding gross margins. That would confirm the new spending is creating profitable growth, not just buying market share at any cost. One step out from the single name: a consumer staples ETF like XLP spreads these company-specific questions across the whole consumer staples group, so no one answer can sink you. It is still a concentrated bet on that one theme, though, which is exactly the gap the portfolio below closes. Where One Stock's Open Questions Fit A Bigger Plan Every stock carries unresolved questions like these, and no earnings call settles all of them. Owning a sector fund spreads that risk across more names, but it is still one bet on one theme: when the theme wobbles, the whole basket wobbles with it. The Trefis High Quality (HQ) Portfolio takes the next step out. It holds about 30 businesses diversified across sectors, selected not on a theme but on quality itself: consistent cash generation, strong margins, and resilient balance sheets. No single unresolved debate, and no single industry, carries your result. It has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. Track the debates on names you like, on top of a core built on quality rather than any one story.

Philip Morris (PM) came out with quarterly earnings of $2.2 per share, beating the Zacks Consensus Estimate of $2.04 per share. This compares to earnings of $1.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.84%. A quarter ago, it was expected that this seller of Marlboro and other cigarette brands would post earnings of $1.82 per share when it actually produced earnings of $1.96, delivering a surprise of +7.69%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Philip Morris, which belongs to the Zacks Tobacco industry, posted revenues of $11.19 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.03%. This compares to year-ago revenues of $10.14 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Philip Morris shares have added about 17.2% since the beginning of the year versus the S&P 500's gain of 9.7%. While Philip Morris has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Philip Morris was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.38 on $11.64 billion in revenues for the coming quarter and $8.40 on $43.23 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Tobacco is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Turning Point Brands (TPB), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -75.5%. The consensus EPS estimate for the quarter has been revised 3.3% higher over the last 30 days to the current level. Turning Point Brands' revenues are expected to be $128.2 million, up 9.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report Turning Point Brands, Inc. (TPB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 133% year-over-year net sales growth in Modern Oral to a 'generational shift' in nicotine consumption, with the segment now representing 42% of total revenue. Performance was driven by strong direct-to-consumer (D2C) platforms and the early expansion of the FRE and ALP brands into larger, higher-volume retail chain accounts. The company is prioritizing nicotine pouches as its primary growth engine, aiming to capture double-digit market share by the end of the decade through aggressive brand positioning. Operational focus is shifting toward localizing production at the Louisville facility to improve supply control and reduce exposure to freight and tariffs. Strategic investments in sales force and marketing are being front-loaded to secure retail placement and build brand awareness in a high-barrier, nascent category. Management views the heritage Stoker's business as a critical cash flow engine that funds the transition into modern nicotine products. The company expects store count to increase by approximately 70% by the end of 2026, supported by recent national and regional convenience chain wins. Management projects Modern Oral gross margins to approach 70% by the end of the decade as domestic manufacturing scales and unit economics improve. Full-year 2026 guidance for Modern Oral was raised to $280 million to $300 million in gross sales, reflecting accelerated retail distribution expectations. Total sales and marketing investment for 2026 is projected between $80 million and $105 million to support brand building and retail productivity. Following negative first-quarter free cash flow of $27.4 million due to investments in working capital and manufacturing, the company anticipates being approximately cash flow breakeven for the remainder of the year. Stoker's segment gross margin decreased 350 basis points to 54%, primarily due to the impact of tariffs on imported materials. A major marketing partnership was signed with TKO properties (UFC, Zuffa Boxing, PBR) to accelerate brand awareness among adult consumers. Zig-Zag segment net sales declined 22% year-over-year, which management attributed to broader category softness despite margin expansion in the segment. The company is 'threading a needle' regarding the PMTA process, balancing infrastructure scaling in Louisville with the rigorous scientific regulatory timeline. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. New chain wins will begin rolling out over the next few weeks, though full implementation depends on individual retailer reset schedules throughout the year. Management expects a more significant pickup in net sales trajectory during the second half of the year as these stores come online. The brands target two distinct consumer bases; ALP has a strong D2C foundation while FRE is expanding rapidly into bricks-and-mortar retail. Retailers are showing appetite for both brands, allowing the company to leverage existing distribution relationships to secure incremental shelf space. The wide EBITDA guidance range reflects management's intent to be 'judicious' and pivot spending based on real-time sales performance and market share opportunities. Upside potential exists if the TKO partnership or new chain wins exceed initial volume expectations.

Q1 2026 Modern Oral Net Sales increased 133% to $52.0 million, accounting for 42% of total company net sales, up from 21% in Q1 2025. Raising FY 2026 Modern Oral Sales guidance; Introducing FY 2026 EBITDA guidance. LOUISVILLE, Ky., May 07, 2026--(BUSINESS WIRE)--Turning Point Brands, Inc. ("TPB" or "the Company") (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, today announced financial results for the first quarter ended March 31, 2026. Q1 2026 Financial Highlights (All results reflect comparisons to prior-year period) Total Consolidated Net Sales increased 16.8% to $124.3 million Stoker's segment Net Sales increased 48.1% Zig-Zag segment Net Sales decreased 22.4% Gross Profit increased 14.6% to $68.3 million Net Income decreased 19.0% to $11.7 million Adjusted EBITDA decreased 6.5% to $25.9 million (see Schedule A for a reconciliation to net income) Diluted EPS of $0.60 and Adjusted Diluted EPS of $0.76 compared to $0.79 and $0.91 respectively, in the same period one year ago (see Schedule B for a reconciliation to Diluted EPS) "We delivered a strong first quarter, driven by continued momentum in Modern Oral and disciplined execution across the portfolio," said Graham Purdy, President and CEO. "We believe we are in the early stages of a generational shift in nicotine consumption, with significant opportunity ahead as the category continues to evolve. We are investing behind our brands, commercial capabilities, and consumer reach to position us to capture meaningful share in white pouch, including through initiatives such as our recently announced TKO partnership featuring UFC. At the same time, our legacy brands continue to generate strong cash flow, providing the foundation to fund our strategic priorities. We remain confident in our ability to scale our modern oral business and drive long-term value for shareholders." Stoker’s Products Segment (70% of total net sales in the quarter) For the first quarter, Stoker’s segment net sales increased 48.1% from the prior year to $87.6 million, driven by triple-digit growth in Modern Oral net sales. For the first quarter, Stoker’s segment gross profit increased 39.1% from the prior year to $47.3 million. Gross profit as a percentage of net sales decreased to 54.0% for the three months ended March 31, 2026, from 57.5% of net sales for the three months ended March 31, 2025, primarily driven by margin contribution from modern oral products. Zig-Zag Products Segment (30% of total net sales in the quarter) For the first quarter, Zig-Zag segment net sales decreased 22.4% from the prior year to $36.7 million. The decrease in net sales was driven primarily by lower U.S. papers and wraps shipments. For the first quarter, Zig-Zag segment gross profit decreased 18.1% from the prior year to $20.9 million. Gross profit as a percentage of net sales increased to 57.1% for the three months ended March 31, 2026, from 54.1% for the three months ended March 31, 2025, driven primarily by product mix. Performance Measures in the First Quarter Investment in the first quarter focused on sales and marketing efforts to support distribution and brand building. In the first quarter consolidated selling, general and administrative ("SG&A") expenses increased 53.2% from the prior year to $55.8 million, inclusive of Modern Oral-related sales and marketing investments and increased outbound freight costs. As of March 31, 2026, ending cash was $192.4 million and net debt was $101.4 million. The Company ended the quarter with total liquidity of $265.0 million, comprised of $192.4 million in cash and $72.6 million of asset backed revolving credit facility capacity. 2026 Outlook Full year Modern Oral Gross Sales of $280-$300 million (from $220- $240 million) Full year Modern Oral Net Sales of $210-$225 million (from $180- $190 million) Full Year Adjusted EBITDA of $70-$90 million, inclusive of investment in Modern Oral sales, marketing, and trade promotions Earnings Conference Call As previously disclosed, a conference call with the investment community to review TPB’s financial results has been scheduled for 8:30 a.m. Eastern on Thursday, May 7, 2026. Investment community participants should dial in 10 minutes ahead of time using the toll-free number (800) 715-9871 (international participants should call (646) 307-1963) and follow the audio prompts after typing in the event ID: 4128483. A live listen-only webcast of the call will be available on the Events and Presentations section of the investor relations portion of the Company website (www.turningpointbrands.com). A replay of the webcast will be available on the site two hours following the call. Non-GAAP Financial Measures In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release includes certain non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Adjusted Operating Income (Loss). A reconciliation of these non-GAAP financial measures accompanies this release. Also note that a reconciliation of forward-looking non-GAAP measures, including EBITDA, to the most directly comparable GAAP measures is not provided because comparable GAAP measures for such measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. About Turning Point Brands, Inc. Turning Point Brands, Inc. (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients through its iconic brand portfolio, including Zig-Zag®, Stoker’s®, FRE®, and ALP®. TPB’s products are available in more than 220,000 retail outlets in North America and on sites such as www.zigzag.com, www.frepouch.com, and www.alppouch.com. For the latest news and information about TPB and its brands, please visit www.turningpointbrands.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, including our outlook for 2026 with respect to Modern Oral Gross and Net Sales and Adjusted EBIDTA. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the "SEC") and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, those included in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995. This press release contains TPB’s preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management and are subject to completion of TPB's customary quarter-end closing and review procedures and third-party review. As a result, TPB's reported information in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding TPB's financial condition and results of operations for the quarter ending March 31, 2026 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of TPB's full first quarter 2026 results when such results are disclosed by TPB in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Financial Statements Follow on Subsequent Pages Non-GAAP Financial Measures To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, we use non-U.S. GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income (Loss). We believe Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income (Loss) are used by management to compare our performance to that of prior periods for trend analyses and planning purposes and are presented to our board of directors. We believe that EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Adjusted Operating Income (Loss) are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance. We define "EBITDA" as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization. We define "Adjusted EBITDA" as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define "Adjusted Net Income" as net income excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define "Adjusted Diluted EPS" as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define "Adjusted Operating Income (Loss)" as operating income (loss) excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. EBITDA, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Operating Income (Loss) exclude significant expenses that are required by U.S. GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate this non-U.S. GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure. In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures. Note that a reconciliation of forward-looking non-GAAP measures, including EBITDA, to the most directly comparable GAAP measures is not provided because comparable GAAP measures for such measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507230137/en/ Contacts Investor Contacts Turning Point Brands, Inc. [email protected]

Turning Point Brands (TPB) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.77%. A quarter ago, it was expected that this company would post earnings of $0.87 per share when it actually produced earnings of $0.95, delivering a surprise of +9.2%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Turning Point Brands, which belongs to the Zacks Tobacco industry, posted revenues of $124.28 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 7.00%. This compares to year-ago revenues of $106.44 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Turning Point Brands shares have lost about 25% since the beginning of the year versus the S&P 500's gain of 7.6%. While Turning Point Brands has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Turning Point Brands was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.73 on $122.3 million in revenues for the coming quarter and $2.89 on $506.45 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Tobacco is currently in the bottom 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Universal Corp. (UVV), has yet to report results for the quarter ended March 2026. This leaf tobacco merchant is expected to post quarterly earnings of $1.08 per share in its upcoming report, which represents a year-over-year change of +35%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Universal Corp.'s revenues are expected to be $728.2 million, up 3.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Turning Point Brands, Inc. (TPB) : Free Stock Analysis Report Universal Corporation (UVV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research