Turning Point Brands' stock plummeted 23.66% during intraday trading on Monday, as investors reacted negatively to the company's financial outlook for 2026 despite solid fourth-quarter results.

The consumer products maker reported Q4 2025 revenue of $121.01 million, slightly beating analyst expectations, with adjusted EPS of $0.95 also surpassing estimates. The quarter was driven by a 266% year-over-year surge in Modern Oral net sales, which now account for 34% of total sales.

However, the company's guidance for FY 2026 net revenue of $180-$190 million appears to have disappointed investors, leading to the sharp decline. The stock had already been trading at elevated valuation levels, with a P/E ratio of 33 times next 12-month earnings compared to 24 three months ago, and Wall Street's median price target was already below its recent closing price.