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

Fuel Systems Solutions, Inc. (NASDAQ:FSYS) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.06%.

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Fuel Systems Solutions, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.04 in the quarter versus EPS of $-0.06 in the year-earlier quarter.

Revenue: Rose 1.24% to $98.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fuel Systems Solutions, Inc. reported adjusted EPS loss of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.04. It beat the average revenue estimate of $96.3 million.

Quoting Management: Mariano Costamagna, Fuel Systems’ CEO, said, “First quarter revenues were largely as anticipated as we focused on efficient execution and continued innovation. In our Automotive segment, DOEM conversions, particularly in Italy and the US were solid, offset to some degree by weaker aftermarket sales as our marketplaces become increasingly competitive amid a tough global economy. We are promoting our premier brand position in the aftermarket by working closely with our dealer network to communicate our value proposition and by investing in new products that broaden our solutions offering. Our Industrial segment saw softer sales from heavy duty commercial vehicles, while APU and engine volumes were stronger. We remain focused for this year on managing costs to maximize profitability while further investing in advancing our brand presences and technological leadership and adding to our customer relationships around the world.”

Key Stats (on next page)…

Revenue increased 0.56% from $98.05 million in the previous quarter. EPS decreased to $-0.04 in the quarter versus EPS of $0.01 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 $0.14 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $0.56 to a profit of $0.37 over the last ninety days.

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