Fuel Systems Solutions Goes Red

Fuel Systems Solutions (NAS: FSYS) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Fuel Systems Solutions met expectations on revenues and missed expectations on earnings per share.

Compared with the prior-year quarter, revenue improved and GAAP earnings per share contracted to a loss.


Margins dropped across the board.

Revenue details
Fuel Systems Solutions booked revenue of $97.4 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $98.1 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $90.8 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.06. The six earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were -$0.06 for Q1 against $0.02 per share for the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.2%, 60 basis points worse than the prior-year quarter. Operating margin was 1.1%, 220 basis points worse than the prior-year quarter. Net margin was -1.2%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $107.5 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $435.6 million. The average EPS estimate is $0.47.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 466 members out of 529 rating the stock outperform, and 63 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Fuel Systems Solutions a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fuel Systems Solutions is outperform, with an average price target of $29.20.

Over the decades, small-cap stocks like Fuel Systems Solutions have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story