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Triumph Group Inc. (TGI - Analyst Report) reported strong results for the second quarter of 2013 (ended September 30, 2012) on October 30, 2012.

Earnings per share from continuing operations, excluding $1.4 million of pre-tax integration costs (or 2 cents per diluted share) and a $2.0 million pre-tax charge (or 2 cents per diluted share) related to early retirement incentives to certain employees, increased 36.5% year over year to $1.57 per diluted share during the reported quarter. Results surpassed the Zacks Consensus Estimate of $1.32 per share by 18.9%.

However, including integration costs and early retirement incentives to certain employees, income from continuing operations was recorded at $80.2 million, or $1.53 per diluted share.

Revenue: In the reported quarter, net sales inched up 18.7% year over year to $938.2 million, most of which is organic growth. Revenue was 9.3% more than the Zacks Consensus Estimate of $858.0 million.

Segment wise, sales from Aerostructures surged to $714.0 million from $588.0 million in the prior-year comparable quarter. Aerospace Systems revenue grew 12.2% year over year to $150.1 million, while Aftermarket Services increased to $76.1 million from $70.5 million in the year-ago quarter.

Margins: Operating income in the second quarter escalated 31.8% to $142.9 million compared with $108.5 million in the year-ago quarter. Operating margin increased to 15.2% in the reported quarter from 13.7% in the second-quarter of 2012.

EBITDA jumped 28.9% year over year to $170.3 million in the quarter while EBIDTA margin rose to 18.2% from 16.7% in the year- ago quarter.

Balance Sheet: Exiting the second quarter, Triumph’s cash and cash equivalents were approximately $30.7 million compared to $32.0 million at the end of the previous quarter. Long-term debt (net of current portion) was down 0.5% to $967.5 million from $972.2 million in the previous quarter.

Cash Flow: Cash provided by operations, before pension contributions, was recorded at $61.3 million (including pension contribution of $30.9 million) in the three-month period ended September 30, 2012; up from $5.8 million in the year-ago period. Capital expenditures in the reported quarter climbed to $24.1 million from $18.5 million in the three-month period ended September 30, 2011.

Outlook: Increased revenue across segments, operating income growth and margin expansion look impressive for the upcoming quarters. Steady backlog, stronger balance sheet and significant cash flow generation were the added perks.

Based on the above positives, the company reaffirmed the revenue guidance range of $3.5 to $3.7 billion for fiscal 2013. Further, management raised its full-year earnings guidance to approximately $5.95 per diluted share from continuing operations, excluding integration costs and early retirement incentives. Initially, earnings per share were projected to be approximately $5.65, excluding integration costs.

The company faces stiff competition from its peers, such as AAR Corp. (AIR - Analyst Report) andUnited Technologies Corp. (UTX - Analyst Report)).

Triumph Group holds a Zacks #1 Rank, which translates into a short-term ‘Strong Buy’ rating (1-3 months).

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