Why Cigarette Alternative Turning Point Brands Is Tumbling Today

Shares of Turning Point Brands (NYSE: TPB) were tumbling nearly 17% lower in morning trading Tuesday after the cigarette alternative products maker posted third-quarter results that fell short of analyst expectations on the top line, but beat the consensus estimates on the bottom line. Turning Point Brands specializes in selling rolling papers under its Zig-Zag brand, which account for 38% of total sales and enjoyed double-digit growth. Stoker's moist snuff tobacco (MST) and chewing tobacco, on the other hand, represent 28% of sales, but suffered divergent outcomes as chewing tobacco plunged while MST jumped.