By Rob Curran
Shares of Turning Points Brands were higher after surging demand for its Modern Oral smokeless tobacco generated robust quarterly sales growth and caused it to boost sales projections for the brand.
The maker of Zig-Zag rolling papers, Stoker's smokeless tobacco and Solace e-cigarettes logged earnings of $14.4 million, or 79 cents a share, up from $12 million, or 63 cents a share, a year earlier.
Stripping out certain one-off items, first-quarter adjusted earnings amounted to 91 cents a share, in line with the mean analyst estimate, as per FactSet.
Sales rose 28% to $106.4 million, handily beating the average Wall Street target of $95.8 million. Sales of Stoker's smokeless tobacco surged 63%, driven by strong demand for Modern Oral products. Sales of the Modern Oral brand rose almost tenfold to $22.3 million. Smokeless tobacco is growing in popularity with young people in the U.S. and overseas.
Turning Point boosted its projection for 2025 Modern Oral sales to a range between $80 million and $95 million from a prior projection of $60 million to $80 million.
Shares of Turning Point rose 9.3% to $70.90 in premarket trading.
The company backed its prior projection for adjusted earnings before interest, taxes, depreciation and amortization of $108 million to $113 million.
Write to Rob Curran at rob.curran@wsj.com
(END) Dow Jones Newswires
May 07, 2025 09:13 ET (13:13 GMT)
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