Turning Point Brands (TPB) reported earnings on Tue 5 March 19 (b/o)

** charts after earnings **

 

Turning Point Brands reports EPS in-line, beats on revs; guides Q1 revs above two analyst estimate; guides FY19 revs in-line 

• Reports Q4 (Dec) earnings of $0.49 per share, excluding non-recurring items, in-line with the two analyst estimate of $0.49; revenues rose 28.2% year/year to $94.29 mln vs the $91.7 mln two analyst estimate.
• Co issues upside guidance for Q1, sees Q1 revs of $89-93 mln vs. $87.35 mln two analyst estimate.
• Co issues in-line guidance for FY19, sees FY19 revs of $370-385 mln vs. $382.55 mln two analyst estimate.

Beat estimates on revs (+28.2% year/year) while posting in-line EPS for Q4; guided Q1 revs above estimates and FY19 revs in-line. Net sales and gross profits recorded for Q4 and the year marked records for co; in the quarter, Smokeless products net sales increased +10.2%, driven by double-digit volume growth in Stoker's MST, while Smoking Products net sales decreased by $1.8 mln, with price/mix each decreasing by 3.1%, and NewGen segment net sales grew +86.2% on momentum from VaporBeast and a full quarter of results from co's acquisition of International Vapor Group, which dates to September 2018. Co sees 2019 as a transformative year full of novel introductions.

Turning Point Brands (TPB) began trading on the NYSE on 11 May 2016

Turning Point Brands, Inc. provides alternative tobacco products such as snuff and smokeless products primarily in the United States. It operates through three segments: Smokeless Products, Smoking Products, and NewGen Products.
The company priced its IPO at $10 a share, selling 5.4 million shares to investors and raising $54 million, according to Marketwatch.com. The price is lower than the range of $13 to $15 per share that the company said it expected. The joint managers of the offering are Cowen Group's Cowen and Company, and FBR.

• Headquarters: Louisville, KY
• Founded: 2004
• Sector: Consumer Defensive
• Industry: Tobacco
• Full Time Employees: 289
• turningpointbrands.com

After opening at $10, the stock closed at $10.19 on volume of nearly 2 million shares. It traded as high as $10.40 during the day and as low as $9.90.

Turning Point Brands sells tobacco and related products such as Zig-Zag rolling papers, Beech-Nut chewing tobacco, cigar products and moist snuff. The company formerly was known as North Atlantic Holding Co. Inc. Locally, it's best known for one of its subsidiaries: National Tobacco Co., which operated manufacturing and distribution facilities in Louisville until 2009.

President and CEO Lawrence Wexler and the company's management team rang the opening bell at the New York Stock Exchange this morning to commemorate the IPO.

The last Louisville company to file an IPO prior to Turning Point Brands was Bowie Resource Partners, in June 2015. Bowie owns and operates coal mines. We last heard from that company last year, when it was involved in a $358 million coal mine deal.