On Jun 12, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy). With a strong return of 28.5%
over the past six months and a positive estimate revision trend,
DTS is an attractive investment opportunity.
ADVENT SOFTWARE (ADVS): Free Stock Analysis
AKAMAI TECH (AKAM): Free Stock Analysis
DTS INC (DTSI): Free Stock Analysis Report
SONIC FOUNDRY (SOFO): Free Stock Analysis
To read this article on Zacks.com click here.
Why the Upgrade?
DTS continues to impress with its innovative product pipeline,
increasing online availability, new customer wins and
partnerships. DTS reported a better-than-expected first quarter
of 2013, with non-GAAP earnings (including stock-based
compensation) of 7 cents, much better than the Zacks Consensus
Estimate of a loss of 7 cents per share.
Revenues for the quarter increased 21.7% on a year-over-year
basis to $32.7 million. However, revenues were slightly below the
Zacks Consensus Estimate of $33.0 million. The primary driving
factor behind DTS' strong performance has been strategic
partnerships with the likes of Qualcomm, Samsung, Pantech,
Yulong, Lenovo, Panasonic, Fujitsu, Haier, LG, Changhong,
Hisense, TCL, Konka, Skyworth and Huawei.
The partnerships with these consumer electronics manufacturers
have not only expanded DTS's penetration in the Asian markets but
also boosted revenue growth over the last few quarters. The
recently signed partnership between DTS and automaker BYD will
expand DTS' reach in the Chinese automotive industry.
DTS believes that the primary growth driver for 2013 will be the
network connected business (TV and mobile devices), which will
offset sluggish growth from the Blu-Ray market. We believe that
DTS will continue to gain from accelerated expansion of its
technology into new markets, such as smartphones, portable
devices, digital media players and network-connected TV space.
The Zacks Consensus Estimate for fiscal 2013 increased 6.2% (4
cents) to 69 cents per share as most of the estimates were
revised higher over the last 60 days. Earnings estimate is much
better than the year-ago loss of 38 cents per share. For fiscal
2014, the Zacks Consensus Estimate is pegged at 74 cents per
The long-term expected earnings growth rate for DTS is 15.2%.
Other Stocks to Consider
Investors can also consider other stocks that are doing well
right now. These include
). Currently, all of them carry a Zacks Rank #1 (Strong Buy).