The broader auto industry is drastically changing, from companies like Tesla (TSLA – Free Report) redefining what it means to own a luxury vehicle to Silicon Valley tech giants like Uber helping create new sectors like ride-hailing.

In particular, the auto parts manufacturing space has experienced a surge in demand, with sales rising and vehicle production ramping up over the last few years. This industry will also likely get a boost from the increased focus on autonomous and electric vehicle technology, as well as demand for fuel efficiency components.

One auto space company that has seen its stock rise in 2017 is Dana Incorporated (DAN – Free Report) .

Sitting at a Zacks Rank #1 (Strong Buy), Dana provides technology driveline, sealing, and thermal-management products. The company is headquartered in Maumee, Ohio, and its operating segments include Light Vehicle Driveline Technologies, Commercial Vehicle Driveline Technologies, Off-Highway Driveline Technologies, and Power Technologies.

Strong Third Quarter Earnings

Last quarter, Dana reported third-quarter results that beat estimates on both the top and bottom lines.

Earnings of 59 cents beat the Zacks Consensus of 56 cents per share and soared 20% year-over-year.

Revenues of $1.83 billion also beat our consensus estimate, and grew 32% from the prior-year period. This increase was driven in part by recent acquisitions, while stronger market demand and new business generated 21% organic sales growth.

Raised Guidance for Fiscal 2017

As a result, Dana raised key financial guidance across all of its business units for fiscal 2017.

Sales are now expected between $7 billion and $7.2 billion, while diluted adjusted EPS should fall in the range of $2.30 and $2.50 per share.

Adjusted EBITDA is projected between $820 million and $850 million, and adjusted EBITDA as a percent of sales should now be 11.7% to 11.9%.

Dana is also forecasting cash flow from operations of $530 million to $570 million.

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