Fuel Systems Solutions Earnings: Here’s Why Investors are Buying Shares Now

Fuel Systems Solutions, Inc. (NASDAQ:FSYS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 16.99%.

Fuel Systems Solutions, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18.18% to $0.13 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 1.97% to $111.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fuel Systems Solutions, Inc. reported adjusted EPS income of $0.13 per share. By that measure, the company beat the mean analyst estimate of $0.09. It beat the average revenue estimate of $107.48 million.

Quoting Management: Mariano Costamagna, Fuel Systems’ CEO, said, “Second quarter results reflected normal seasonal trends as we focused on executional efficiency and competing effectively in difficult markets. Greater DOEM revenues in our Automotive segment than last year, primarily due to an increasingly meaningful contribution from US Automotive, offset lower aftermarket kits sales, which continue to be pressured by a difficult economy and increasing competition, particularly in Europe. Our Industrial mobile and stationery engine business was solid and drove this segment’s growth in the quarter, despite softer results from the heavy duty market in Asia. Although our gross profit margin was impacted by these factors, our operating margin in the quarter benefitted by the consolidation of our automotive operational processes, which is streamlining our operating expenses and manufacturing efforts. Overall, Fuel Systems is tracking toward its full year 2013 objectives. For the second half of 2013, we will remain focused on maximizing profitability while continuing to strategically invest in our brands, our technology, our product offerings, and broadening our customer relationships.”

Key Stats (on next page)…

Revenue increased 12.68% from $98.6 million in the previous quarter. EPS increased to $0.13 in the quarter versus EPS of $-0.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.07 to a profit $0.06. For the current year, the average estimate has moved down from a profit of $0.26 to a profit of $0.22 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)