By Amira McKee

Shares of Turning Point Brands slumped after the company posted fourth-quarter earnings that disappointed analysts despite a triple-digit boost in nicotine pouch sales raising its top-line.

The stock tumbled 20% to $109 in Monday morning trading, part of the worst three-day stretch since the three days ended March 16, 2020, when it fell 24%. The shares have gained 55% in the past year.

The tobacco and alternative smoking company recorded a fourth-quarter net income of $8.2 million, or 42 cents a share, compared with $2.4 million, or 13 cents a share, a year earlier.

The results missed Wall Street's forecast for earnings of 87 cents a share, according to FactSet.

Adjusted earnings came in at 95 cents a share, in-line with estimates from analysts polled by FactSet.

Sales grew 29% to $121 million, ahead of the $120.4 million that analysts were looking for, according to FactSet.

The top-line gains were driven by a 70% sales boost in the Stoker's segment, which saw triple-digit growth in white nicotine pouch sales and modest gains in its legacy products like looseleaf chewing tobacco. The growth was partially offset by a 13% decline in sales from its rolling papers brand Zig-Zag.

Turning Point Brands anticipates logging full-year gross sales from its modern oral nicotine pouch business of $220 million to $240 million and net sales of $180 million to $190 million from the products in 2026.

Inclusive of investment in modern oral sales, marketing and trade promotions, the company expects first-quarter adjusted earnings before interest, taxes, depreciation and amortization of $24 million to $27 million. Analysts polled by FactSet forecast earnings before interest, taxes, depreciation and amortization of $30.8 million in the first quarter.

Write to Amira McKee at amira.mckee@wsj.com

(END) Dow Jones Newswires

March 02, 2026 12:09 ET (17:09 GMT)

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