Heico (NYSE:HEI) continues to report solid financial results in fiscal 2017. Third-quarter earnings released on Wednesday showed nearly double-digit growth on the top and bottom lines -- and that's ahead of the company's big acquisition having any impact on financial results. 

Here's a look at the headline numbers and the factors driving the business that investors should know. 

Aircraft flying above the clouds with sun in the background.

Image source: Getty Images.

Heico: The raw numbers

Metric Q3 2017 Q3 2016 Year-Over-Year Change
Sales $391.5 million  $356.1 million  9.9% 
Net income $45.7 million  $42.0 million  8.8% 
Diluted earnings per share $0.53  $0.49  8.2% 

Data source: Heico Q2 2017 earnings report. 

What happened with Heico this quarter? 

Heico said that all of its business units performed well on broad demand growth in the quarter, and the details bear that out. 

  • Flight support group net sales rose 16% to $258 million in the quarter on organic growth of 6% and the addition of acquisitions. Operating income in the segment rose 11% to $46.7 million. 
  • Electronic technologies group sales increased 1% to $137.9 million, which was lower than 9% growth for the first three quarters of the year because of delays in government orders. Operating income, however, jumped 15% to $38.5 million in the quarter. 
  • The acquisition of AeroAntenna Technology Inc. for $316.5 million happened shortly after the quarter ended but will be a big growth engine in the future. The purchase price will be paid for with cash on hand and the company's credit facility. If it closes in the fourth quarter, as hoped, it will be late in the quarter, so expect to see the financial impact begin in the first quarter. 
  • Long-term debt fell from $457.8 million at the end of fiscal 2016 to $434.3 million, but that figure will increase as the AeroAntenna Technology acquisition is completed.

What management had to say

Overall, management was happy with the results and indicated that there aren't many weaknesses in the business today. Chairman and CEO Laurans Mendelson said, "These outstanding results reflect record net sales and operating income for the first nine months of fiscal 2017 within both the Flight Support Group and Electronic Technologies Group, achieved through increased demand for the majority of our products."

It was also stated that acquisitions could play a role in future growth, and after some big deals announced in the last few years, management seems to have its eye on growing more through acquisitions if the right deal comes about. 

Looking forward

The first three-quarters of the fiscal year have been better than expected, and as a result, management is increasing full-year guidance. Net sales growth expectations were increased 100 basis points to a range of 9% to 11%. Net income is expected to grow 12% to 14%, a 200-basis-point increase from previous guidance. 

With operations firing on all cylinders and overall aviation demand increasing, the future continues to look bright for Heico.

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends Heico. The Motley Fool has a disclosure policy.