Turning Point Brands, Inc. (NYSE: TPB) reported Q3 EPS of $0.47, $0.05 worse than the analyst estimate of $0.52. Revenue for the quarter came in at $83.3 million versus the consensus estimate of $84.1 million.

• Net sales increased 13.6% to a record $83.3 million;
• Gross profit increased 10.0% to a record $36.2 million;
• Net income attributable to Turning Point Brands, Inc. increased 7.9% to $8.0 million;
• Adjusted EBITDA was $16.5 million (see Schedule A for a reconciliation to net income);
• Diluted EPS of $0.40 and Adjusted Diluted EPS of $0.47 as compared to $0.38 and $0.35 in the year-ago period, respectively (see Schedule D for a reconciliation to Diluted EPS); and
• Other highlights from the third quarter:
  • Stoker’s MST retail distribution expansion continues, generating double-digit volume gains;
  • Zig-Zag delivers double-digit sales gains in Canadian rolling papers as the country adopts legalized recreational cannabis; and
  • NewGen net sales growth of 33.1% as TPB enhances the NewGen segment with the acquisition of International Vapor Group (“IVG”) and its strong B2C marketing platform

“Our Smokeless, Smoking and NewGen segments each delivered net sales advances in the quarter, demonstrating the continuing success of our focus brands”, said Larry Wexler, President and CEO. “Stoker’s MST became available in over 77,000 stores and closed the quarter at another record share. Zig Zag Hemp products continue to ride the organic and legalization wave and VaporBeast accelerated its growth to its highest revenue quarter ever.”

GUIDANCE:

Turning Point Brands, Inc. sees FY2018 revenue of $327-333 million, versus the consensus of $330.85 million.

For earnings history and earnings-related data on Turning Point Brands, Inc. (TPB) click here.