Fuel Systems Solutions Inc.

Fuel Systems Inc (FSYS) has raised its guidance on the heels of a fantastic quarterly report. Growth rates are through the roof as the company just expanded its delayed-OEM operations.

Company Description

Fuel Systems Solutions, Inc. designs and manufactures supplies for alternative fuel components for both transportation and industrial uses. The company's products and systems allow regular combustion engines to operate using either propane or natural gas.

Fuel Systems was founded in 1958, carries a market cap. of $588.64 million and is headquartered in Santa Ana, California.

Record Setting Quarter

On Nov 6 Fuel Systems announced fantastic results in the face of recession woes and volatile energy prices.

Net income was $11.9 million, a drastic improvement over the $395 thousand loss in the same quarter last year.

Revenue spiked 61.8%, on a year-over-year basis, to $105.5 million, up from $65.2 million. Earnings per share were 73 cents, more than double the 23 cents expected by analysts.

This was the fourth surprise in the past 4 quarters, each averaging 147%.

Raising Guidance

With a fantastic quarter in the books, the company raised full year guidance. Revenue is now expected to be $385 million, with increased profit and operating margins.

Analysts have followed suit as the full-year consensus estimates are rising. The average earnings estimate for 2008 is now $1.81 per share, up from $1.30 90 days ago. Wall Street is forecasting $2.04 for 2009, up from $1.71 during the same period of time.

The year-over-year growth rates projected using these estimates are a staggering 376% for 2008 and 13% for 2009.

New Facility Open

On Dec 3 Fuel Systems cut the ribbon on a new installation plant in Pisa, Italy. The delayed-OEM facility will receive automobiles from the manufacturer, install the propane and natural gas fuel system, and then deliver the vehicle to the dealership.

Read the full analyst report on FSYS