Rolling paper company Turning Point Brands profit falls as high gas prices impact business

Turning Point Brands Inc. said Wednesday its second-quarter net income dropped to $5.42 million, or 30 cents a share, from $15.36 million, or 73 cents a share, in the year-ago quarter. Adjusted earnings for the maker of Zig-Zag rolling papers dropped to 70 cents a share from 84 cents a share in the year-ago quarter. Revenue fell by 16.1% to $102.9 million from $122.64 million. Analysts expected Turning Point Brands to earn 58 cents a share on revenue of $105.9 million, according to a survey by FactSet. The company cited higher gasoline prices that reduced traffic at convenience stores. Looking ahead, Turning Point Brands expects its Zig-Zag segment to generate 2022 revenue of $193 million to $200 million, compared to its earlier view of $193 million to $203 million. Shares of Turning Point Brands are down 42.3% in 2022 compared to a drop of 26.1% by the Nasdaq .

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