Compass Minerals Intl Inc CMP shares are trading higher after the company announced preliminary third-quarter revenue above estimates.

The company reported preliminary revenue of $202.9 million, exceeding the estimated $197.775 million.

Compass Minerals reported preliminary adjusted EBITDA of $32.8 million, including a $0.9 million non-cash gain from a decrease in the Fortress contingent liability.

The Salt segment showed strong performance with adjusted EBITDA of $28.05 per ton. The average sales price for sulfate of potash rose to $691.27 per ton for the second consecutive quarter.

Additionally, Plant Nutrition segment witnessed an adjusted EBITDA per ton of $128.57 and an adjusted EBITDA margin of 18.6%.

Edward C. Dowling Jr., president and CEO, said, “Compass Minerals’ core businesses produced strong results in the third quarter. We had solid results in the Salt segment that reflect the robust earnings potential of that business, while we continued to see sequential improvements in realized price, adjusted EBITDA per ton, and adjusted EBITDA margin in the Plant Nutrition segment.”

“It’s disappointing that we have been delayed in sharing the positive performance of the core businesses with the market due to issues surrounding certain historical accounting matters. It is important for the market to know that the core Salt and Plant Nutrition business are performing well, and that we are also focused on positioning the company for better performance in the future.”

Compass Minerals stated that it continues to assess various options for the future of Fortress North America.

The company ended the quarter with $220.8 million in liquidity, including $12.8 million in cash and cash equivalents and $208.0 million available under its $375 million revolving credit facility.

Also, the company is actively engaged with its current and predecessor auditors as it corrects the errors and restates the affected financial statements.

As part of that process, additional audit procedures covering fiscal years 2021 through 2023 have been needed, thereby extending the process to complete the restatements.

Outlook: Compass Minerals has revised its FY24 revenue outlook, adjusting the Salt segment forecast from $900 million – $920 million to $900 million – $910 million, and the Plant Nutrition segment forecast from $170 million – $205 million to $175 million – $185 million.

Price Action: CMP shares are up 24.2% at $11.44 at the last check Tuesday.

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