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Dolby & OPPO Enter Into Intellectual Property Partnership
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Dolby Laboratories, Inc. (DLB - Free Report) recently entered into global, strategic intellectual property (IP) collaboration with Guangdong OPPO Mobile Telecommunications Corp., Ltd. The new partnership will encompass Dolby’s innovative audio-visual technologies, including High-Efficiency Advanced Audio Coding and JPEG-HDR technologies.
Leveraging Dolby’s audio-visual technologies through IP, OPPO will be able to produce smartphones with impressive user experiences. Notably, Dolby makes its technologies available through licensing programs, thereby enabling the company’s partners to generate values for them as well as their customers.
Dolby has maintained its long-standing collaborations with industry leaders like Amazon (AMZN - Free Report) and Netflix (NFLX - Free Report) to offer best-in-class services and fend off competition. We expect the company to gain market traction from the offerings under its three businesses namely — Dolby Voice, Dolby Vision and Dolby Cinema. These, in turn, are likely to strengthen its market footprint, moving ahead.
In the past month, this Zacks Rank #3 (Hold) company’s shares have rallied 6.4%, outperforming the industry’s gain of 2.9%.
Based on present industry trends, the company remains confident that Dolby Vision’s growth momentum will continue to accelerate, going forward. Meanwhile, Dolby Cinema technology proved to be a major profit churner for the company. For instance, in the fiscal first quarter of 2018, the company added about 20 Dolby Cinema screens, bringing the aggregate to 133 Dolby Cinemas across the world, and has plans to open over 360 more. Per market reports, consumers are increasingly viewing video content on smartphones, tablets and computers, which in turn is expected to unlock further growth opportunities for Dolby.
However, the company’s license agreements lack minimum purchase commitments and are non-exclusive. This implies that if the licensees do not use Dolby’s technologies, the company will incur significant losses. Furthermore, free and proprietary sound technologies are being increasingly adopted by clients and the company apprehends that competitors will soon freely enter this space with other offerings, threatening its market share.
Sony has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 79.8%.
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Dolby & OPPO Enter Into Intellectual Property Partnership
Dolby Laboratories, Inc. (DLB - Free Report) recently entered into global, strategic intellectual property (IP) collaboration with Guangdong OPPO Mobile Telecommunications Corp., Ltd. The new partnership will encompass Dolby’s innovative audio-visual technologies, including High-Efficiency Advanced Audio Coding and JPEG-HDR technologies.
Leveraging Dolby’s audio-visual technologies through IP, OPPO will be able to produce smartphones with impressive user experiences. Notably, Dolby makes its technologies available through licensing programs, thereby enabling the company’s partners to generate values for them as well as their customers.
Dolby has maintained its long-standing collaborations with industry leaders like Amazon (AMZN - Free Report) and Netflix (NFLX - Free Report) to offer best-in-class services and fend off competition. We expect the company to gain market traction from the offerings under its three businesses namely — Dolby Voice, Dolby Vision and Dolby Cinema. These, in turn, are likely to strengthen its market footprint, moving ahead.
In the past month, this Zacks Rank #3 (Hold) company’s shares have rallied 6.4%, outperforming the industry’s gain of 2.9%.
Based on present industry trends, the company remains confident that Dolby Vision’s growth momentum will continue to accelerate, going forward. Meanwhile, Dolby Cinema technology proved to be a major profit churner for the company. For instance, in the fiscal first quarter of 2018, the company added about 20 Dolby Cinema screens, bringing the aggregate to 133 Dolby Cinemas across the world, and has plans to open over 360 more. Per market reports, consumers are increasingly viewing video content on smartphones, tablets and computers, which in turn is expected to unlock further growth opportunities for Dolby.
However, the company’s license agreements lack minimum purchase commitments and are non-exclusive. This implies that if the licensees do not use Dolby’s technologies, the company will incur significant losses. Furthermore, free and proprietary sound technologies are being increasingly adopted by clients and the company apprehends that competitors will soon freely enter this space with other offerings, threatening its market share.
Key Pick
A better-ranked stock from the same space is Sony Corporation sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sony has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 79.8%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>