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Tickers in this Article: ERJ, BA, TGI, ATRO
On Jul 8, 2013, the shares of Triumph Group Inc. (TGI) hit a 52-week high of $82.06. Triumph Group registered positive earnings surprises in the last four quarters, with an average beat of 11.28%.

The ongoing improvement in the commercial aviation market will boost the company’s future prospects. Recently, Triumph Group received a $1.7 billion contract from Brazilian aircraft manufacturer, Embraer SA (ERJ), to provide aeronautical services.

Triumph Group also supplies aerospace structures to The Boeing Company (BA) and Airbus. The shower of orders for these two companies at the recently concluded Paris Air show could open up new opportunities for Triumph Group. Europe's Airbus notched up orders for 466 planes worth $70 billion in sales at the show while Boeing inked agreements for 442 planes worth $66 billion.

Triumph Group made two strategic acquisitions this year. Both these acquisitions will complement the company’s operations and will be immediately accretive to its earnings.

Triumph Group projects ongoing earnings for fiscal 2014 in the range of $6.30 to $6.40 per share, up from $6.21 per share earned in fiscal 2013. The company expects total revenue in the range of $3.8 billion to $4.0 billion.

We expect long-term earnings growth of 13.15% on the back of sales growth of 36.49%. The Zacks Consensus Estimate for 2013 of $6.37 is on the higher end of the guided range, reflecting an estimated year-over-year growth of 2.56%.

The strong financial position of Triumph Group enables it to reward its shareholders through dividend payments. In fiscal 2013, the company paid dividends worth $8 million to its shareholders.

Triumph Group currently retains a Zacks Rank #3 (Hold). Meanwhile Astronics Corp. (ATRO) with a Zacks Rank #1 (Strong Buy) is worth considering.

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