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What: Shares of alternative fuel component provider Fuel Systems Solutions
So what: The company reported a loss per share of $0.02 on a day when analysts were expecting a profit of $0.10, so the disappointment is justified. Revenue guidance didn't help the cause, coming in at $375 million to $400 million, when analysts expected $402.3 million.
Now what: As oil prices rise, Fuel Systems Solutions would seemingly be in a sweet spot as we look for alternative fuels, but the 2011 revenue outlook doesn't include much optimism. I am most concerned by a steady decline in profits over the last year ending in a loss in the fourth quarter. I just don't see a reason to jump on today's move since the stock trades with an 18.6 forward P/E multiple. Not great value with earnings on the decline.
Interested in more info on Fuel Systems Solutions? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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