(FSYS) – Fuel Systems Solutions – cashing in on America’s growing desire for less expensive fuel alternatives – 300% jump in earnings

Fuel Systems Solutions, Inc. (FSYS) is cashing in on America’s growing desire for less expensive fuel alternatives. The company’s first-quarter results were impressive Incorporatedluding a 300% jump in earnings. Analyst estimates are up as Fuel System’s forecasts continued strong demand.

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 cars 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.

An Industry Trend

As higher gasoline prices continue to pressure consumers, alternative energy company’s have been experiencing a sharp up tick in demand for their products and services. Fuel System’s falls into this category, as seen by the company’s impressive first-quarter results, reported on May 12.

First-Quarter Results

Revenue came in at $94.6 million, an impressive improvement from last year’s $54.8 million. Net income was up big, climbing to $6.2 million from just $1 million last year. This produced earnings of 40 cents per share, easily trumping analyst expectations of 16 cents per share.

The company noted that it experienced a 50% jump in its unit volume from the same period last year.

Guidance Raised

After the great quarter Fuel Systems boosted its full-year guidance, saying it now expects to generate revenue of $320 million. Analysts are projecting current-year earnings of $1.02 per share, up from 87 cents 60 days ago.


With shares currently trading at $38, this is by no means an inexpensive stock, carrying a forward P/E multiple of 38X, as the market is pricing in very high expectations for significant earnings growth.

The Chart

Shares of FSYS have already had an amazing year, advancing from less than $11 to current levels over $39, an amazing return of more than 300%. More recently, this stock traded lower after hitting a new 52-week and all-time high in late June. But the sell-off was short lived as investors capitalized on the lower prices, driving share back to the 52-week high.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

| Blog Home| VitalStocks Home
View original at: VitalStocks Blog


Powered by Facebook Comments

Similar Posts: | Auto Parts | Consumer Goods

RSS feeds: FSYS | Auto Parts | Consumer Goods |

Other Posts by | RSS Feed for this author