In the 2018 CineEurope trade show, Dolby Laboratories, Inc. (DLB - Free Report) announced its plans to expand operations into the European cinema market. In addition to this, the company also advertised its non-imitable imaging, audio, post-production and accessibility technology in the expo.
In sync with the aforementioned plan, Dolby Laboratories has inked an agreement with Odeon Cinemas Group — an acquired business arm of AMC Entertainment Holdings, Inc. (AMC - Free Report) — in a bid to unveil the first Dolby Cinema in the U.K. Per the deal, seven Dolby Cinema sites will be rolled out in the country over the next few years. Notably, per the agreement, Odeon Cinemas Group will utilize Dolby servers, speakers and processors across all of its European entities.
On the same day, Dolby Laboratories announced that it has entered into an agreement with Kinopolis to deploy its foremost Dolby Cinema in Germany. The first site is projected to open up later this year in Mathäser Palast, Munich.
Deployment of Dolby Cinemas in the U.K. and Germany will completely enhance the cinema experience for viewers in these countries. These theatres will be equipped with state-of-the-art projection and sound technology, new Oscar’s bars, luxury recliner seats, along with innovative beverage and food counters.
Furthermore, Dolby Laboratories shared its plans to ink a deal with Les Cinémas Gaumont Pathé during the second half of this year, for expanding the Dolby Cinema portfolio in France.
Over the past year, shares of this Zacks Rank #3 (Hold) company have rallied 29.5%, outperforming 26.6% growth recorded by the industry.
We believe the above-mentioned expansion moves in Europe will drive Dolby Laboratories’ overseas revenues and profitability, going forward. Also, other prospective deals, like Jinyi Cinemas’ plan to open up 20 Dolby Cinema sites in China, and Shochiku Multiplex Theatres’ agreement to deploy Dolby Cinema in Japan will fortify the company’s international business footprint.
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AMC Networks Inc. (AMCX - Free Report) carries a Zacks Rank #2 (Buy). The company pulled off an average positive earnings surprise of 28.43%, over the last four quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Public Education, Inc. (APEI - Free Report) also carries a Zacks Rank of 2. The company recorded an average positive earnings surprise of 21.52%, over the trailing four quarters.
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