Fuel Systems Solutions (FSYS) Reports Strong Quarter, Beats Estimates On Strong Italian Demand

Fuel Systems Solutions (FSYS) has reported impressive quarterly results this morning, beating analyst estimates in the process.  The company reported an EPS of $1.12 (vs estimates of .98/share) on revenues of $163.7 million (vs estimates of $158.7 million).  That’s nearly a double in revenues over the year ago quarter and represents the 3rd straight sequential improvement.  On the EPS side, the number improved many times over from the year ago quarter when the company reported just .04/share and this is the 4th straight quarter of sequential improvement. 

A portion of the quarterly surge was attributable to the uncertain future of the incentives in Italy which spiked demand in the short term.  While the company still expects a strong market in Italy, they don’t see a repeat performance of this quarter

CFO Matthew Beale commented on the quarter: “During 2009, we proved the flexibility of our distribution capability, scaling our DOEM capacity to facilitate rapid deployment of multiple bi-fuel models for our OEM customers. Growing OEM participation has raised the visibility and availability of this technology and allowed gaseous fuel vehicles to emerge as a viable product segment in the new vehicle market. We will work closely with our OEM partners in 2010 as they define and implement their regional and global alternative fuel strategies. We are also focused on the automotive aftermarket, anticipating that rising crude prices and gradual economic recovery should begin to translate into increased volumes following large declines in 2009. We expect some rebound in our industrial business, which we are poised to capture with an expanded technology, product and customer platform. And we will continue to pursue acquisitions that complement and accelerate our core organic growth strategy.”

Looking ahead, the company expects full year 2010 revenues between $400 – $450 million, so flat to down over this year due to diminishing Italy demand and a decrease in DOEM installations.  The company expects strong results again this quarter before leveling off.

Shares of FSYS are up about 5% in premarket trading, recovering from a big slide in the past few months.

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