Seeking Alpha
Profile| Send Message|
( followers)  

While we're happy to own Fuel Systems Solutions (FSYS), we took profits on this name after a-long standing limit order hit [Oct 28: 2008: Bookkeeping - Limit Order Hit for Fuel Systems Solutions], and we experienced a spike in price the very next session [Oct 29, 2009: Bookkeeping - Selling Most Fuel Systems Solutions on Spike] , and are just sitting with a tiny 0.1% exposure. So correct assessment of a company, bad timing in terms of lacking exposure - we normally cut back ahead of earnings either way, but since the stock had broken below its 50 day moving average, we were at our lowest possible exposure. Obviously technical analysis is moot around important news events. As I type the stock is up 23%...

Either way, very impressive results; 77 cents per share excluding "one time" items, 34 cents better than expectations on only 10% year over year revenue growth. Obviously they can now raise guidance for fiscal 2009 - which they have: $416-425M v $379M consensus. Gross margins target 30-32%; operating margins 14-16%.

Via Reuters:

  • Alternative fuel components maker Fuel Systems Solutions Inc (FSYS) posted a quarterly profit that beat market expectations helped by strong demand for alternative-fueled vehicles, especially in Italy, and raised its full-year revenue outlook.
  • Revenue rose 10 percent to $116.2 million.
  • For the third quarter, net income attributable to the company was $15.5 million, or 88 cents a share, compared with $11.9 million, or 75 cents a share, a year ago. During the quarter, the company recorded a gain of 11 cents a share related to an acquisition.
  • "While the soft global economy continues to impact the transportation aftermarket and industrial businesses, OEM/DOEM (delayed original equipment manufacturer) transportation demand has gained momentum during the second half of 2009," Chief Financial Officer Matthew Beale said in a statement.
  • Fuel Systems, which acquired Teleflex Inc's power systems business, said demand from Europe will continue.

Guidance:

  • For 2009, the company sees revenue of $415 million to $425 million, up from its prior view of $370 million to $380 million, driven by margin improvements and acquisitions.
  • In 2009, the company expects a gross margin of 30 percent to 32 percent, and operating margin of 14 percent to 16 percent. In August the company said it was targeting 2009 gross margin of 28 percent to 30 percent, and operating margin of 11 percent to 13 percent.

Full report here

.[Jul 2, 2008: Bookkeeping: Buying Fuel Systems Solutions for the 3rd Piece of my Alternative Energy Basket]

Long Fuel Systems Solutions in fund; no personal position

Source: Fuel Systems Rockets Higher: Wish We Had More Exposure