Collins Stewart Upgrades Dolby Laboratories (DLB) to Hold; Adjusts Estimates

October 30, 2009 9:31 AM EDT

Collins Stewart upgrades Dolby Laboratories (NYSE: DLB) from Sell to Hold.

Collins analyst says, "We are upgrading DLB to HOLD ahead of the company s FQ4 (Sep) report given strong shipment trends in DVD, Notebook PCs, and LCD TVs. While these trends have maintained themselves in the September quarter and should benefit Dolby's outlook, we see several headwinds to y/y revenue growth in FY 10 given 1) tough y/y comps due to $40-50M in one-time revenues and 2) declining attach rates of third-party DVD playback software beginning with the launch of Windows 7...We are raising our FQ4 09 estimates to $163M (-5% q/q) / 35c from $159M (-7% q/q) / 33c, which is slightly above Street est of $156M (-9% q/q) / 33c...We are lowering our FY 10 estimates to $721M (+0% y/y) / $1.89 from $739M (+4% y/y) / $1.94, which is slightly below the Street's $726M (+1% y/y) / $1.97."

To see more analyst ratings on DLB Click Here.

Dolby Laboratories, Inc. engages in the development and delivery of products and technologies for the entertainment industry.

Related Categories

Upgrades

Stocks Mentioned

Related Entities

• Collins Stewart

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?