The maker of alternative fuel components blew by the Zacks Consensus Estimate of 43 cents, reporting 77 cents per share in the quarter. It was the third consecutive earnings beat. Revenue rose 10% to $116.2 million.

The company did a record 47,000 systems installations and anticipates that demand from Europe will continue. For 2009, it expects revenue between $415 and $425 million.

Analysts have not yet revised estimates to reflect the big earnings surprise. The 2009 Zacks Consensus Estimate is currently calling for $1.68 per share. In 2010, analysts are expecting 18.56% earnings growth.

Fuel Systems is a Zacks #2 Rank (buy) stock. Earnings are expected to grow 27.33% over the next five years.

1-Year Chart:

The stock spiked off of the big earnings surprise and is now trading at new 52-week highs.

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(FSYS) Fuel Systems Solutions Inc. – Smashed Past the Estimates

Company Description

Odyssey Healthcare, Inc. provides hospice care services focused on palliative care for patients with life-limiting illnesses. Care is directed at managing pain and other discomforting symptoms and addressing the psychosocial and spiritual needs of patients and their families.

Crushed Estimates

Odyssey reported third-quarter results on Oct 28 that took analysts by surprise. The company reported earnings per share of 35 cents, well above the 25 cents Wall Street expected. This was the hospice provider’s third consecutive earnings surprise.

Net income, of $11.6 million, was nearly double the previous year’s $5.9 million. Odyssey’s CEO, Robert Lefton, credited higher patient volume and controlling expenses for the successful quarter.

Explosive Growth

In the past month there 13 upward revisions were submitted for full-year 2009, this is from just 7 analysts. The Zacks Consensus Estimate for the year is now $1.16, up from $1.03. This would be good enough for a 97% year-over-year growth.

Next year’s estimates are also rising. The average forecast for 2010 is currently $1.21, up 14 cents in the same period of time. This would be good for another 4% growth.

Valuations

The stock is trading at a nice value, just 12 times forward earnings. Given the growth rate, the PEG ratio is just 0.9.

The Chart

Shares of ODSY jumped violently on the earnings release, but are now consolidating and showing much less volatility. Take a look at the chart below.

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(ODSY) Odyssey Healthcare Inc. – Topped Earnings Forecasts by 40%

Company Description

Odyssey Healthcare, Inc. one of the largest providers of hospice care in the United States. Hospice services focus on palliative care for patients with life-limiting illnesses, which is care directed at managing pain and other discomforting symptoms and addressing the psychosocial and spiritual needs of patients and their families.

Crushed Estimates

Odyssey reported first-quarter results on Apr 29 that took analysts by surprise. The company reported earnings per share of 26 cents, well above the 20 cents Wall Street expected. This was the hospice provider’s second surprise in the past 4 quarters.

Net income, of $8.7 million, was nearly 6 times higher than the previous year, just $1.5 million. Odyssey’s CEO, Robert Lefton, credited higher admissions and patient diversity as a driver for the successful quarter.

Another Acquisition

Odyssey expanded into Michigan through a deal to acquire Avalon Hospice program, however it is not expected to have a significant impact on 2009 earnings.

The March 2008 acquisition of VistaCare, Inc. is starting to show in earnings for 2009. One month of the VistaCare’s earnings have gone toward the previously mentioned quarterly-results and all operations will contribute to the parent company from now on.

Explosive Growth

While analysts have not submitted updated estimate revisions the company is still showing excellent growth projections. Estimates for full-year 2009 are up 12 cents to 86 cents over the past 3 months.

The consensus for 2010 is now 98 cents, up from 91 cents. These marks would yield year-over-year earnings growth of 45% and 15% for 2009 and 2010, respectively.

The Chart

I hate to be a bottom caller, but as you can see below the full-year consensus estimates could be forming an rounded bottom and start heading higher. If this trend continues, look for the previously struggling hospice provider to post more excellent quarters in the future.

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(ODSY) Odyssey Healthcare, Inc. – Aggressive Growth – Zacks Rank Buy

Company Description

Odyssey Healthcare provides hospice care in more than 30 states for terminally ill patients and their families. ODSY offers pain management and addresses the psychological and spiritual needs of the patients and their families.

Odyssey uses nurses, doctors, home healthcare aides, social workers, chaplains, bereavement counselors and trained volunteers to provide care in patients’ homes, nursing homes or assisted living facilities.

Revenue Jumped 63.7% in the Fourth Quarter

On Feb 18, Odyssey Healthcare reported fourth quarter earnings which met analysts’ estimates. Net income was $5.4 million, or 16 cents per share, compared with $1.2 million, or 4 cents per share, in the year ago period. Adjusted EPS were 17 cents.

Net patient service revenue for the fourth quarter surged 63.7% to $167.3 million from $102.2 million in 2007. For the year, net patient service revenue grew 54.7% to $616 million from $398.2 million in full-year 2007. The fourth quarter results included the operations of VistaCare, which was acquired in March 2008.

“We had good admission growth during the fourth quarter with admissions volume increasing by 1.6% over the third quarter of 2008,” said Robert A. Lefton, president and chief executive officer.

“This growth, however, was offset by an increase in our discharge rate, which spiked toward the end of the fourth quarter.”

“The net effect of the increase in our admissions and discharges resulted in a slight increase in our average daily census to 12,357 for the fourth quarter of 2008 as compared with 12,329 for the third quarter of 2008,” he added.

Consensus Estimates Rise

Given the company’s fourth-quarter results, covering analysts are bullish about the first quarter and full-year 2009. First-quarter estimates rose 3 cents to 21 cents in the last week. Full year estimates climbed 8.1% to 80 cents from 74 cents in the last 7 days.

“ODSY 4Q08 financial results were in line with expectations and included operations of VistaCare, which was acquired in March 2008,” said Zacks Equity Analyst Chris Kallos in a Feb 19 Research Report.

“We are encouraged by the progress to date of the integration of the Vistacare acquisition and believe the recent BNAF related Medicare reimbursement phase out reprieve announced in the stimulus package is positive for the stock. We retain our Hold rating at current levels.”

Value Fundamentals

Odyssey Healthcare is a Zacks #1 Rank (strong buy) stock. The Zacks Recommendation is a Hold. The Zacks Rank is most effective over a shorter time period whereas the Zacks Recommendation considers a longer time horizon.

ODSY is trading with a forward P/E of 12.3. It has a price-to-book of 1.87. The company also has a stellar 5-year average return on equity (ROE) of 15.30%.

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(ODSY) Odyssey Healthcare, Inc. – Value – Zacks Rank Buy

Company Description

Odyssey Healthcare provides hospice care around the country for terminally ill patients and their families. ODSY offers pain management and addresses the psychological and spiritual needs of the patients and their families.

Odyssey uses nurses, doctors, home healthcare aides, social workers, chaplains, bereavement counselors and trained volunteers to provide care in patients’ homes, nursing homes or assisted living facilities.

Odyssey Beat Wall Street Estimates by 35.17% in the Third Quarter

On Oct 28, Odyssey Healthcare reported third-quarter earnings and saw revenue rise 65.5% to $165.2 million from $99.8 million in the third quarter of 2007. Revenue was positively impacted by the March 2008 acquisition of VistaCare, Inc.

The company also saw good patient volume during the quarter. The average daily census rose to 12,329 in the third quarter from 12,212 in the second quarter.

Net income was $5.9 million, or 18 cents, compared to $3.1 million, or 9 cents, in the year ago period.

The company took some charges during the quarter related to consolidating operations after the VistaCare acquisition.

Odyssey continues to expand. It announced that it entered into a joint venture with Valley Baptist Medical Center in the Brownsville- McAllen, Texas area to provide hospice care. The venture is effective beginning Oct 1.

Odyssey was already operating its own hospice program in the area but will now be joining forces with Valley Baptist to provide one single hospice program under Odyssey management.

2008 Consensus Estimates Jump

Given the solid third-quarter results, covering analysts are bullish about the fourth quarter and the full-year. Fourth-quarter consensus estimates increased 2 cents to 16 cents in the last 60 days. For 2008, consensus estimates rose 7 cents to 61 cents per share in the last 2 months.

Analysts expect 2008 year-over-year earnings growth of 22%.

Value Fundamentals

Odyssey Healthcare is a Zacks #1 Rank (strong buy) stock. It’s trading at 10.2x forward earnings. The company’s price-to-book is 1.25. ODSY has a stellar 5-year average return on equity (ROE) of 16.02%.

Content Courtesy: Zacks Investment Research

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(ODSY) Odyssey Healthcare – Analysts expect 2008 year-over-year earnings growth of 22%