Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of audio specialist DTS (Nasdaq: DTSI) played a pleasing note for investors today, rising as much as 12% after the company reported fourth-quarter earnings.

So what: After yesterday's close, DTS drew back the curtain on its fourth-quarter numbers, to resounding investor applause. Revenue for the quarter increased 27% year over year to $26.9 million, easily topping Wall Street's $24.5 million expectations. Earnings per share similarly topped estimates, clocking in at $0.34 versus the expected $0.31. Overall, it was a very successful 2010 for DTS as the company notched total revenue growth -- excluding royalty payments -- of 38% and managed to expand its non-GAAP operating margin from 33% to 38%.

Now what: Blu-ray is a key theme for DTS, since the company's technology is mandated in all Blu-ray players. With that tailwind, along with a growing number of other devices that can use DTS's technology, the company is expecting a strong 2011. Management projects revenue in a range of $100 million to $105 million, continued margin expansion, and EPS of $1.40 to $1.49. If the company can hit those targets, it could crush Wall Street's estimates of $102 million in revenue and $1.15 in EPS.

For investors, DTS has the draw of a smaller up-and-comer that could grow faster than its larger competitor Dolby (NYSE: DLB). However, Motley Fool Stock Advisor favorite Dolby is no slouch when it comes to growth, and even considering DTS's strong 2011 guidance, its stock still trades at a significant premium to Dolby's.

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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.