* Q3 adj EPS $0.77 vs est $0.43

* Revenue up 10 pct

* Raises FY09 revenue forecast

* Shares jump 26 pct (Adds analyst comments, updates share movement)

By Bhaswati Mukhopadhyay

BANGALORE, Nov 5 (Reuters) - Fuel Systems Solutions Inc's (FSYS.O: Quote, Profile, Research) quarterly results topped market expectations on strong demand for alternative-fueled vehicles, especially in Italy, and the company raised its full-year revenue outlook, sending its shares to a 13-month high.

Shares of the alternative fuel components rose as much as 26 percent to $42.70, but later pared some gains to trade up $8.56 at $42.36 Thursday afternoon on Nasdaq.

Analysts expect Italian subsidies for bi-fuel systems to be the key driver of the company's growth going forward.

Adoption of bi-fuel CNG and LPG vehicles continues to be strong in Italy and now represent over 25 percent of all new cars sold in the country, compared with 7 percent in 2008, analyst Dilip Warrier of Thomas Weisel Partners said in a note.