Fuel Systems Solutions (FSYS) reported excellent earnings results this morning, reporting a Q2 EPS of $0.39, vs the analyst estimate of $0.22 on revenues of $99.8 million, vs the estimate of $89.53 million.  Granted, those numbers are close to flat compared to what they reported a year ago and way below what they reported last quarter, but that’s due to the end of Italian subsidies.  The company has been discussing this for some time and that appears to be built into the stock.

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CEO Mariono Costamagna commented:  “Fuel Systems’ second quarter 2010 results exceeded our expectations as DOEM installation volumes in Italy found a new, healthy level in an unsubsidized environment. We achieved revenue of $99.8 million, up 8% from a year ago, and were able to keep gross margin to 26% by drawing on the flexibility inherent in our manufacturing model to align costs with demand. In our transportation business, we expanded our international exposure with our OEM and aftermarket channels. Also, our industrial business revenue increased 176% over last year’s second quarter and delivered significantly improved operating income.”

Due to increased levels of predictability in their markets and a stabilized post-incentive environment for DOEM installations in Italy, the company is narrowing the full year guidance to between $425 – $450 million and increasing margin expectations a bit to 29 – 31% for gross margins.  They expect the results for this quarter to be about inline with what they reported for last quarter.

Shares of FSYS are up about 6% in pre-market trading and the march to resistance of the 200 day moving average around 35 continues.