On Thursday, sound technology company Dolby Labs
What might have accounted for the jump? Sure, Dolby has beaten analyst expectations by an average of 35% each quarter over the past four quarters. The 14 analysts covering the company anticipate an 18% increase in profits, or $0.32 a share, on revenue of $134.7 million. That alone shouldn't account for the price rising.
No, I'd surmise that it was the earnings report by Microsoft
Sales of the enterprise version of the Premium edition grew 35% for the quarter, and the number of licenses for the operating system has surpassed 100 million.
In recent earnings releases, Dolby, a Motley Fool Stock Advisor recommendation, reported that its fortunes improved because of Vista sales. Where analysts continuously expect Microsoft to fall short -- and Vista to fall even shorter -- the company continues to impress. Maybe it's Apple
Dolby has a slightly different problem. It's not its technology that analysts doubt, but rather where that technology is deployed. First, the much-anticipated demise of the DVD player was expected to slow Dolby's sales, except that the laptop computer, which includes DVD players, has helped drive those sales further. Falling computer sales were also supposed to eat into revenue, but that's turned out to be not much of a concern, either. Then it was Vista, which was generally panned as an inferior product -- yet both Microsoft and Dolby have seemed to prove otherwise.
Although Dolby does have competition, you don't hear too many people wanting to ensure their equipment has DTS
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Fool contributor Rich Duprey owns shares of Dolby Labs but doesn't have a financial position in any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.
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