Fuel Systems Solutions Beats on Both Top and Bottom Lines

Fuel Systems Solutions (Nasdaq: FSYS  ) reported earnings on Aug. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Fuel Systems Solutions beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share improved significantly.

Margins grew across the board.

Revenue details
Fuel Systems Solutions notched revenue of $109.0 million. The eight analysts polled by S&P Capital IQ expected a top line of $105.0 million on the same basis. GAAP reported sales were 6.6% lower than the prior-year quarter's $116.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The six earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS of $0.36 for Q2 were 89% higher than the prior-year quarter's $0.19 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.7%, 350 basis points better than the prior-year quarter. Operating margin was 5.7%, 20 basis points better than the prior-year quarter. Net margin was 6.6%, 330 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $109.3 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $427.8 million. The average EPS estimate is $0.31.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 471 members out of 532 rating the stock outperform, and 61 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Fuel Systems Solutions a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fuel Systems Solutions is hold, with an average price target of $24.67.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On August 13, 2012, at 6:46 PM, peteranthonyng wrote:

    Are the FSYS italian holders teasing the American investors?

    Back in 2009, the IMPCO Automotive Division was founded. After a few months, FSYS raised 30 million with American investors for supplemental funding of this division, which acquired companies such as PCI and Natural-Drive that turned out being empty incompetent shells that drained all resources and annihilated revenues for many quarters. Funny to know that in those days the Italian Sister Company BRC had (and still has) 70+ millions in the bank. Why didn’t they use their own money, and wasted the American investors’? Just so the CEO could save a few bucks to buy beautiful Italian castles or spend it for non-profitable racing teams for his own amusement? (

    Also, I just heard they will now shut down Impco Automotive and start anew as BRC USA. Are they gonna risk their own money this time?!? Or tease the americans once more?

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