On Aug. 1, Motley Fool Stock Advisor recommendation Dolby Laboratories
- Licensing revenue and strong year-over-year growth in the PC market helped boost total revenue 27.7%.
- Sales, general, and administrative expenses rose a sharp 26% from paying higher professional consulting fees and rewarding employees with larger bonuses. Despite the increase, margins continued to improve.
- The bottom line grew 52.9%.
- Dolby gets a thumbs-up from the Motley Fool CAPS community, with a top five-star rating. Competitors DTS
(NASDAQ:DTSI) and Sony(NYSE:SNE) aren't as favorably received -- CAPS players give them just two- and one-star ratings, respectively.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$119.6 |
$93.7 |
27.7% |
|
Net Profit |
$29.7 |
$19.1 |
55.5% |
|
EPS |
$0.26 |
$0.17 |
52.9% |
|
Diluted Shares |
113.7 |
112.0 |
1.5% |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
83.7% |
79.8% |
3.8 |
|
Operating Margin |
33.5% |
29% |
4.5 |
|
Net Margin |
24.8% |
20.4% |
4.4 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$536.5 |
$447.8 |
19.8% |
|
Accounts Rec. |
$25.0 |
$37.5 |
(33.3%) |
|
Inventory |
$14.1 |
$12.0 |
17.8% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable* |
$103.2 |
$71.8 |
43.8% |
|
Long-Term Debt |
$10.0 |
$11.3 |
(10.9%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$105.5 |
$86.4 |
22.1% |
|
Capital Expenditures |
$6.9 |
$5.7 |
21.9% |
|
Free Cash Flow |
$98.5 |
$80.7 |
22.1% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- No Red Light District for Dolby
- Dolby's Got an Ear for Profits
- Foolish Forecast: Does Polycom Deserve a Cracker?
- Microsoft Wins One
What other stocks are at the top of Tom and David Gardner's list? Be our guest at the Stock Advisor website for 30 days and find out.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
