The earnings miss and margin compression from elevated cocoa costs are likely to pressure the stock near term. Watch for Q3 sales timing reversal and any update on cocoa cost relief in the next 10-Q. The lack of guidance adds uncertainty.
Price Chart
Executive Summary
Tootsie Roll Industries reported Q2 2026 net sales of $151.9M (down 1% YoY) and EPS of $0.18 (down 22% YoY), missing prior-year comparisons. Earnings were pressured by higher cocoa and chocolate costs, increased trade promotions, and unfavorable sales timing. Management expects lower cocoa costs in H2 2026 but offered no quantitative guidance.
Key Financial Metrics
Key Facts
- Q2 2026 net sales: $151,943,000 vs $153,190,000 YoY (-1%)
- Q2 2026 net earnings: $13,347,000 vs $17,544,000 YoY (-24%)
- Q2 2026 EPS: $0.18 vs $0.23 YoY (-22%)
- First half 2026 net sales: $301,431,000 vs $299,711,000 YoY (+1%)
- First half 2026 EPS: $0.41 vs $0.47 YoY (-13%)
- Gross margins adversely affected by significantly higher cocoa and chocolate unit costs
- Effective tax rate declined to 26.9% from 33.1% in Q2 2025
- No explicit guidance provided; forward-looking statements cite tariff and input cost risks
Financial Impact
EPS declined 22% YoY; net earnings down $4.2M vs prior year quarter
Risk Factors
- Cocoa and chocolate costs remain above historical levels despite recent retreat
- Elevated energy and packaging costs may persist
- Trade promotions and advertising spending could continue to pressure margins
- Unfavorable international results and tariff/retaliatory tariff risks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-086127 |
| Document: tr-20260722x8k.htm | 0001104659-26-086127 |
| Document: 0001104659-26-086127-index-headers.html | 0001104659-26-086127 |
| Document: 0001104659-26-086127-index.html | 0001104659-26-086127 |
| Document: 0001104659-26-086127.txt | 0001104659-26-086127 |
| 8-K Data (Synthetic) | 0001104659-26-086127 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $37.19 $34.78 | ▲ +6.48% | ▲ +5.96% | $34.54 (+7.13%) |
Jul 23, 2026 13w ago | 8-K | $37.92 $37.52 | ▲ +1.05% | ▲ +1.16% | $34.54 (+8.91%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers