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 Dolby Laboratories (NYS: DLB) had technical difficulties and fell 18% in trading today.
So what: In the fiscal third quarter, revenue fell 5% to $219 million and earnings per share were flat at $0.55. Results were actually better than the $215.5 million in revenue and $0.54 per share in earnings that analysts expected.
Now what: What can I say? The market is crazy. Dolby announced it is buying back $250 million in shares, it beat estimates, and still the stock is getting crushed. Even at the low end of guidance, shares are trading below a 12 P/E ratio for the year. I think this is a great buying opportunity if you can stomach the next few weeks in a crazy market.
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At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter services have recommended buying shares of Dolby Laboratories. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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