Shares of Compass Diversified Holdings (CODI) surged 5.68% on Wednesday morning, following the company's strong third-quarter earnings report. The conglomerate reported record adjusted EBITDA of $114 million, up 28% year-over-year, and raised its full-year guidance, boosting investor confidence.

CODI's impressive performance was driven by robust growth in its branded consumer segment, which saw a 10.3% increase in pro forma revenues and a 27% jump in adjusted EBIT. Businesses like Lugano, Boa, and PrimaLoft contributed significantly to this growth, capitalizing on resilient demand from affluent consumers.

While the industrial segment faced some headwinds, the company's consolidated net sales rose 11.8% year-over-year to $582.6 million. Net income surged to $31.5 million, compared to a loss of $3.8 million in the same period last year, and adjusted earnings increased by 65% to $48.7 million.