The roll call of great earnings reports continues. After the bell yesterday, we got a great report from Dolby Labs (DLB) which has been one of our top-performing Quantum Growth stocks. Dolby beat Wall Street’s consensus by a stunning 30%.
For their fiscal second quarter, Dolby earned 60 cents a share while Wall Street was expecting just 46 cents a share. Sales rose 18% to more than $204 million which topped consensus by nearly 13%.
If you’re not familiar with Dolby, the company makes sound processing and noise reduction systems. Although the company does make some of its own products, Dolby predominately licenses its technology to other manufacturers who pay big bucks to sell their audio equipment under the Dolby label. In fact, most of the company’s revenue comes from the value of its brand, as licensing accounts for more than 80% of Dolby’s sales.
The company also raised the lower end of its full year guidance. Dolby now sees full-year EPS ranging from $1.76 to $1.91. The stock is an excellent buy.