Fuel Systems Solutions ( FSYS) surged in after-hours trading Thursday when the Santa Ana, Calif.-based company swung to a third-quarter profit and boosted its full-year revenue guidance. The company, which makes systems that enable internal-combustion engines to run on clean fuels, posted income of $3.4 million, or 22 cents a share, compared with a loss of $9.2 million, or 64 cents a share, a year ago. Revenue climbed 13% to $55.4 million. Two analysts polled by Thomson Financial expected the company to earn 13 cents a share on revenue of $44.2 million. Looking ahead, the company raised its full-year revenue guidance to at least $210 million, up from an earlier forecast of $200 million. Analysts were looking for revenue of $203.1 million. Shares were trading up $2.77, up from 18.2%, to $18. California Pizza Kitchen ( CPKI) tumbled after the Los Angeles-based company beat Wall Street's third-quarter expectations, but lowered its fourth-quarter guidance. The casual-dining restaurant-chain operator posted income of $6.7 million, or 34 cents a share, up from $5.5 million, or 28 cents a share. Revenue increased 14.7% to $142.8 million. Analysts were looking for earnings of 33 cents a share on $142.7 million in revenue. Comparable restaurant sales increase of 5.6%. California Pizza lowered fourth-quarter guidance to a range of 13 cents to 15 cents a share, down from an earlier guidance of 25 cents to 27 cents a share, while Wall Street is forecasting income of 28 cents a share.
The company cited several factors for the reduction, including delays in new restaurant opening dates that will reduce fourth-quarter results by about 6 cents a share. Also, management concluded negotiations to secure early lease termination and close the last of its money-losing restaurants. The company said this will adversely affect fourth-quarter earnings by 3 cents a share, but will be accretive in 2007. Looking ahead to 2007, the company forecast earnings to range from $1.31 to $1.33 a share. Wall Street is looking for earnings of $1.38 a share. Shares were trading down $3.37, or 10.7%, to $28.21. Dolby Labs ( DLB) climbed after the San Francisco-based audio engineering company flew past targets and raised sights for its fiscal 2007. The company posted a pro forma profit of $25.2 million, or 61 cents a share, for the fiscal fourth quarter ended Sept. 29. Those numbers compare with an adjusted profit of $26.8 million, or 15 cents a share, in the year-ago period. Total sales for the quarter were $102.1 million, a 29% improvement from the $78.9 million revenue level a year ago. Analysts were looking for an 11-cent-a-share adjusted profit on $83.8 million in sales. For fiscal year 2006, Dolby reported total revenue of $391.5 million, compared to $328 million for prior year. Looking ahead, the company expects total sales for the 2007 fiscal year to hit somewhere between $420 million and $450 million. That is well above Wall Street's $405 million consensus target. Shares were trading up $3.75, or 19%, to $23.49.
Pacific Sunwear of California ( PSUN) posted sharply lower earnings for its third quarter, hurt by weaker sales, an inventory writedown and costs related to the departure of its CEO. Shares, however, moved higher in late trading after the surf-clothing retailer offered an optimistic outlook for the holiday period. The company said Thursday that its third-quarter profit fell to $9 million, or 13 cents a share, from $40.5 million, or 54 cents a share, a year earlier. The results included a charge of 10 cents a share for inventory writedowns; 3 cents a share for stock-option costs and pre-opening rent expenses; and 1 cent a share from the departure of CEO Seth Johnson. Johnson, who had held the top spot for only a year and a half, left last month amid continued sales declines at the chain. Sales for the third quarter fell to $375.4 million from $377.5 million, while same-store sales declined 6.7%. Sally Frame Kasaks, interim chief executive, said one of her first goals was to improve the appearance of the Pacific Sunwear stores by reducing inventory density. According to the company, inventory per square foot is down 5.6% from the same time a year ago. For the fourth quarter, Pacific Sunwear sees earnings of 45 cents to 50 cents a share. Analysts, on average, project earnings of 46 cents a share. Shares were trading up $1.53, or 8.9%, to $18.80. Capstone Turbine ( CPST) retreated after the Chatsworth, Calif.-based microturbine-technology solutions company posted a nearly 50% drop in second-quarter revenue. The company posted a loss of $10.4 million, or 10 cents a share, compared with $10.2 million, or 12 cents a share, a year ago. Revenue dropped 48% to $2.9 million. Two analysts were looking for the company to post a loss of 10 cents a share on $5.6 million in revenue. Shares were trading down 21 cents, or 13%, to $1.41. InfoSonics ( IFON) plummeted after the wireless-handset distributor missed third-quarter earnings targets. The San Diego-based company made $677,000, or 4 cents a share, for the quarter ended Sept. 30, down from $1.2 million, or 10 cents a share, a year ago. Revenue rose 25% from a year ago to $67.6 million. Adjusted earnings, excluding stock-based compensation expenses, were a nickel a share. An analyst surveyed by Thomson Financial was looking for a 7-cent profit on sales of $72 million. Shares were falling $1.25, or 21.6%, to $4.55. Five Star Quality Care ( FVE) gained after the Newton, Mass.-based senior-living communities operator swung to a third-quarter profit. The company posted income of $3.2 million, or 10 cents a share, compared with a loss of $84.4 million, or $5.64 a share, a year ago. Excluding income operations, Five Star posted earnings of 18 cents per share. Revenue totaled $201.8 million, up 8% from a year ago. Wall Street was looking for earnings of 17 cents per share on revenue of $202.3 million. During the third quarter of 2005, Five Star terminated 12 management agreements with Sunrise Senior Living ( SRZ) and recorded a termination charge of $81.5 million. Shares of Five Star were trading up 93 cents, or 9.2%, to $11.