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What: Shares of Fuel Systems Solutions (UNKNOWN:FSYS.DL) were getting pumped up today, climbing as much as 23% after a top-notch earnings report.
So what: The maker of fuel delivery systems said that earnings per share came in at $0.13, well ahead of analyst estimates at $0.08, while revenues inched up 1.9% to $111.1 million, beating the consensus at $106.5 million. The better-than-expected performance was not without obstacles as CEO Mariano Costamagna noted that sales of aftermarket kits were lower and felt pressure in Europe from the sluggish economy and rising competition. Fuel Systems also reaffirmed its sales guidance for the year at $400 million-$420 million, in line with estimates.
Now what: Despite beating expectations, the company's EPS was still down sharply from a year ago when it hit $0.36, as gross profit actually fell in the quarter even with the increase in sales. Analysts are expecting slim profits for the rest of the year, and slow growth next year. An earnings beat is always nice, but it seems like Fuel Systems has more structural problems to get over first.