Turning Point Brands announces preliminary Q4 results below consensus

Published 10/02/2025, 15:22
Turning Point Brands announces preliminary Q4 results below consensus

Turning Point Brands, Inc. (NYSE:TPB), a manufacturer of tobacco products with a market capitalization of $1.19 billion, has provided preliminary estimated financial results for the fourth quarter and full year ended December 31, 2024, in a recent SEC filing dated today. The company, which boasts a perfect Piotroski Score of 9 according to InvestingPro data, expects to fully report its financial outcomes no later than March 15, 2025.

For the fourth quarter, Turning Point Brands estimates net sales of approximately $93.6 million which compares to the consensus of $102.27 million. The company sees income before income taxes from continuing operations ranging from $13.0 million to $14.0 million, EBITDA between $18.3 million and $19.3 million, and Adjusted EBITDA from $25.3 million to $26.3 million. The company maintains strong financial health with a current ratio of 4.21, indicating robust liquidity. InvestingPro subscribers have access to 15+ additional key financial metrics and insights about TPB’s performance.

The annual figures for 2024 show estimated net sales between $360.0 million and $361.0 million, which compares to the consensus of $413.47 million. The see annual income before taxes from continuing operations anticipated to be between $63.5 million and $64.5 million. EBITDA is projected to be in the range of $83.2 million to $84.2 million, and Adjusted EBITDA between $103.5 million and $104.5 million.

The company also announced that due to the divestiture of its Creative Distribution Solutions (CDS) segment to General Wireless Operations, Inc., it will report the CDS segment’s results as discontinued operations starting with its 2024 annual report. Therefore, the provided financial figures exclude the CDS segment’s results.

The preliminary data is unaudited and subject to finalization, which may lead to material changes. The company cautions that these estimates should not be considered a substitute for full financial statements prepared in accordance with U.S. GAAP.

In addition to the preliminary results, Turning Point Brands also revealed a proposed private offering of $300 million in senior secured notes due 2032. The proceeds from this offering are intended for the redemption or refinancing of its existing senior secured notes due 2026, alongside covering related expenses and for general corporate purposes. The offering is contingent upon market conditions and will only be available to qualified institutional buyers or non-U.S. persons outside the United States.

This SEC filing-based report is intended to provide investors with early insights into Turning Point Brands’ financial position as they await the comprehensive annual financial statements. The stock has shown remarkable strength with a 197% return over the past year, though analysis suggests it may be trading above its Fair Value. For deeper insights, investors can access TPB’s comprehensive Pro Research Report, available exclusively on InvestingPro, which provides detailed analysis of the company’s fundamentals and growth prospects.

In other recent news, Turning Point Brands has reported a series of strategic developments. The company recently transferred its entire interest in South Beach Brands LLC to General Wireless Operations, Inc., receiving a significant minority stake in return. This transaction, which gives Turning Point Brands a 49% ownership of GWO, also includes an option to acquire the remaining 51% of GWO.

Additionally, Turning Point Brands has announced an at-the-market sales agreement with B. Riley Securities, Inc. and Barclays (LON:BARC) Capital Inc. to offer and sell up to $100 million of its common stock. The company intends to use the net proceeds from this offering for general corporate purposes, including expanding the manufacturing of its nicotine pouch brand FRE.

On the analyst front, Craig-Hallum has maintained a Buy rating on Turning Point Brands and raised the price target to $75, reflecting a positive outlook on the company’s nicotine pouch market potential. Oppenheimer has also rated the company as Outperform, highlighting its robust portfolio and potential for growth.

In its recent earnings call, Turning Point Brands reported an 11% increase in adjusted EBITDA for the third quarter of 2024 and raised its full-year 2024 adjusted EBITDA guidance to $101 million to $103 million. These developments reflect the company’s ongoing business strategies and confidence in its financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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