Shares of Dolby Laboratories Inc. rose sharply Friday after the audio technology company posted fiscal second-quarter earnings above Wall Street expectations on robust sales growth.
The company also forecast full-year profit above analyst estimates.
Late Thursday, Dolby said its quarterly profit rose 57 percent to $56.8 million, or 49 cents per share, from $39.1 million, or 34 cents per share, in the same quarter a year earlier.
Sales in the quarter ended March 28 rose 34 percent to $172.6 million from $129 million.
Analysts polled by Thomson Financial expected earnings of 42 cents per share.
For fiscal 2008, Dolby forecast $1.47 to $1.57 in earnings per share and sales of $585 million and $615 million.
Analysts forecast income of $1.46 per share and revenue of $607.4 million.
Goldman Sachs analyst Ingrid Chung noted shares have risen about 25 percent in the last two weeks, but suspects there i still 30 percent upside to her price target of $55.
Chung said Dolby may advance once consumers start using their tax rebate checks from the government, designed to boost the sluggish U.S. economy.
"Fiscal stimulus have historically benefited consumer electronics more than other sales categories," Chung wrote in a client note, who rates the stock "Buy."
Shares rose $4.60, or 11 percent, to $46.35 in morning trading. The stock has ranged from $30.56 to $53.63 over the past year.
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