Turning Point Brands Reports Q2 Earnings: Non-GAAP EPS Beats Estimates by $0.13, Revenue Beats by $3.8M.

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Turning Point Brands ($NYSE:TPB) (TPB) reported their second quarter earnings on Wednesday, and the figures exceeded expectations. TPB reported Non-GAAP Earnings Per Share of $0.62, surpassing the expected figure of $0.49 by $0.13, and revenue of $101M, higher than the predicted $97.2M by $3.8M. Turning Point Brands is a leading provider of Other Tobacco Products (OTP), including snuff, moist snuff, chewing tobacco, and moist snuff pouches. Analysts had expected TPB to report revenue of $97.2 million and EPS of $0.49, however, the company beat expectations with revenue of $101 million and EPS of $0.62.

These strong results demonstrate the strength of TPB’s business model and their ability to capitalize on the growing demand for OTP products. Going forward, investors can expect TPB to continue to grow its revenue and earnings, with analysts forecasting that the company will achieve high single-digit revenue growth over the next few quarters.

Earnings

TURNING POINT BRANDS’s earnings report for FY2022 Q4, ending December 31, 2022, revealed impressive results. The company reported total revenue of 103.39M USD with a non-GAAP EPS of $0.13 that beat analyst estimates. This represented a $3.8M beat on the revenue estimate, along with an impressive increase compared to the previous year.

Year-over-year, TURNING POINT BRANDS saw a 1.8% decrease in total revenue, and a 242.5% decrease in net income. Despite this, their total revenue has still been able to stay consistent, having only fallen from 105.28M USD to 103.39M USD over the past three years.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for TPB. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for TPB. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for TPB. More…

Key Ratios Snapshot

Some of the financial key ratios for TPB are shown below. More…

Stock Price

On Wednesday, Turning Point Brands reported their second quarter earnings which beat analyst expectations by both revenue and non-GAAP earnings per share (EPS). Despite this positive news, the share price of Turning Point Brands closed down by 2.2% from its prior closing price of $23.2, to $22.6. This sell-off of the stock might have been due to the expectation that the company will be unable to maintain such high growth rates due to the volatile nature of the market. Live Quote…

Analysis

GoodWhale conducted an analysis of TURNING POINT BRANDS wellbeing. According to our Star Chart, the company has a high health score of 8/10 considering its cashflows and debt, meaning that it is capable to safely ride out any crisis without the risk of bankruptcy. Based on its track record, we classify TURNING POINT BRANDS as a ‘cow’, meaning that it pays out consistent and sustainable dividends. Given its strong profitability and sustainable dividend payouts, TURNING POINT BRANDS may be attractive to investors seeking a safe and steady return on their investments. However, the company is rated only medium for both dividend payouts and growth, and weak for asset quality, so investors should consider these aspects before investing in this company. More…

Peers

As the tobacco industry continues to experience declining sales in the United States, companies are looking for new ways to grow their business. One area of opportunity is the e-cigarette market. Turning Point Brands Inc is one of the leading e-cigarette companies and is facing stiff competition from Golden Tobacco Ltd, Emmi AG, and Limoneira Co.

– Golden Tobacco Ltd ($BSE:500151)

Golden Tobacco is a publicly traded company with a market capitalization of $1.36 billion as of 2022. The company’s return on equity (ROE) is -5.23%. Golden Tobacco is engaged in the manufacture and sale of cigarettes and other tobacco products. The company’s products are sold in over 50 countries worldwide. Golden Tobacco has a long history, dating back to the early 1800s. The company is headquartered in London, England.

– Emmi AG ($LTS:0QM5)

Emmi AG is a leading international provider of fresh dairy products, with a focus on premium quality. The company has a market cap of 4.1B as of 2022 and a return on equity of 15.21%. Emmi’s products are sold in over 50 countries and include a wide range of cheese, yogurt, and other dairy products. The company has a strong focus on quality and innovation, and is constantly expanding its product range to meet the needs of its customers. Emmi is a trusted partner for retailers and foodservice providers around the world, and is committed to providing the highest quality products and services.

– Limoneira Co ($NASDAQ:LMNR)

Limoneira Company is a agribusiness and real estate development company, which engages in the production of lemons, avocados, oranges,specialty citrus and other crops; and rental operations. The company was founded in 1893 and is headquartered in Santa Paula, CA.

Summary

The company’s Non-GAAP Earnings Per Share (EPS) was $0.62, which beat analysts’ estimates by $0.13. Revenue of $101M was also higher than the forecast by $3.8M. This strong performance is attributed to the company’s aggressive acquisition strategy and focus on product innovation, which has allowed them to expand into new markets.

Despite this positive news, there are still concerns about the market’s long-term prospects due to macroeconomic uncertainties. Analysts are recommending that investors remain cautious but optimistic about TPB’s future.