Dolby (DLB) Set to Introduce Dolby Cinema in the Middle East

Stock performance with laptop and calculator

Dolby Laboratories, Inc. DLB , in collaboration with Emaar Entertainment's cinema brand - Reel Cinemas - announced opening multiple Dolby Cinema locations across the Reel Cinemas portfolio in the Middle East. This comes close on the heels of Dolby's deal to deliver Dolby Atmos immersive audio across the Reel Cinemas portfolio.

Dolby Cinema technology has been one of the strongest growth drivers of the company in recent times. Currently, the technology is present in key geographical regions including the U.S., China and Europe. The foray into the Middle East will fortify its global foothold. Dolby Cinema, along with the company's other two offerings - Dolby Voice and Dolby Vision - has hugely supplemented Dolby's top-line performance.

Year to date, the stock has performed almost in line with the Zacks Categorized Audio/Video Home Product industry. The stock has returned 13.3% in comparison to the industry's average return of 13.9%.

Dolby has planned to open its first sites at the Dubai Marina Mall and the flagship Reel Cinema location at The Dubai Mall. Dolby Cinemas are equipped with state-of-the-art technologies like Dolby Vision and Dolby Atmos, which creates a life-like experience for movie goers. The rich vivid colors, clear sound and realistic images are likely to take the movie-going experience of the Middle East audience to the next level.

Dolby has elaborate plans to boost the stronghold of its technology. Presently, there are just over 50 Dolby Cinema locations, but the company's partners are planning to roll out a total of over 220 locations around the world, reflecting tremendous growth prospects. With the current rate of expansion, Dolby expects to exit the year with over 140 Dolby Cinema locations in operation. Majority of Dolby Cinemas are with the U.S. based theater chain, AMC. AMC is targeting 100 Dolby Cinema locations by the end of calendar year 2017 and 160 by the end of calendar year 2018.

The rapid traction of Dolby Cinema in China last year has been noteworthy. Dolby's collaboration with its Chinese partner, Wanda Cinema Line Corporation, is progressing well. Last year the company announced the opening of the 10th Dolby Cinema and launch of 100 Dolby Cinema locations by the end of 2018. We believe surging demand for premium viewing experiences bodes well for the growth of Dolby Cinema.

Dolby has also been witnessing impressive activity on the earnings estimate revision front. Analysts have become increasingly bullish on the company over the past two months, as the Zacks Consensus Estimate for fiscal 2017 earnings has trended up, from $1.89 cents to $1.93.

Stocks to Consider

Dolby currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the space include Central Garden & Pet Company CENT , H&R Block, Inc. HRB and Activision Blizzard, Inc. ATVI . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . .

Central Garden & Pet Company has a solid average earnings surprise estimate of 120.5%, beating estimates each time over the trailing four quarters.

Activision Blizzard has beaten estimates thrice over the trailing four quarters for an average surprise of 33.9%.

With three out of four beats in the trailing four quarters, H&R Block has a positive average surprise of 7.7%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dolby Laboratories (DLB): Free Stock Analysis Report

Central Garden & Pet Company (CENT): Free Stock Analysis Report

Activision Blizzard, Inc (ATVI): Free Stock Analysis Report

H&R Block, Inc. (HRB): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.