Why DTS Shares Jumped
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 DTS have jumped today by as much as 14% after the company reported earnings.
So what: Revenue in the first quarter came in at $32.7 million, which was ahead of the $29.9 million consensus forecast. Non-GAAP earnings per share was $0.22, also beating the Street's best guess of $0.14 per share. The company's network-connected business was strong but partially offset in declines in the DVD-based business.
Now what: Guidance was better than expected. Revenue for 2013 is expected in the range of $140 million to $146 million, which is ahead of the $136.8 million consensus. Adjusted earnings per share should be $1.05 to $1.20, while the market thought just $1.03 per share was in order. CEO John Kirchner said the network-connected segment is gaining momentum.
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The article Why DTS Shares Jumped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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