Fuel Systems Solutions (FSYS) smashed Wall St EPS estimates of .92/share by reporting $1.59/share, which is a nearly 300% increase over the year ago quarter.  Revenues were also impressive, more than doubling from the year ago quarter to $161.70 million. The company did say after it’s last earnings report that they did expect another strong quarter due to a surge in demand because of expiring Italian subsidies for CNG vehicles, but that it would be leveling off.  That should mean a return to normalcy in quarter over quarter growth for this quarter. 

===> Click Here For Your FREE Fuel Systems Solutions  Analysis

CEO Mariano Costamagna commented on the Italian market, saying, “Our transportation business clearly benefited from continued DOEM demand in Italy, and we are encouraged by the improvements in our transportation aftermarket and industrial businesses.”

CFO Matthew Beale, also chimed in, “We remain focused on our core organic growth strategy as DOEM demand adjusts to an unsubsidized Italian market as we move into the second quarter of the year. We believe that growing OEM support for alternative fuels, the wide choice of vehicle models now featuring our technology, and the accelerated payback period for our systems will continue to drive demand this year, although not at levels stimulated by a strong incentive program.”

In its discussion of the full year outlook, the company is not factoring in subsidy benefits for Italy and indicates low visibility into how the Italian market will react.  It’s making no changes to its financial outlook.  I assume that means they’re sticking to $400 – $450 revenue estimates for the full year, which are the numbers they gave last quarter.

Shares of FSYS are up about 6% in pre-market trading, but technically the stock remains on shaky ground, trading below both the 50 and 200 day moving averages.  A breakout above the March high of 35.38 in the coming weeks would be considerably bullish.