Dolby Laboratories Beats Estimates; Piper Jaffray Reiterates Rating

Dolby Laboratories (NYSE: DLB) reported a strong September quarter, exceeding Street EPS by $0.08, Piper Jaffray reports. Upside in the quarter was driven by higher than expected license revenue.

“As expected, the FY11 outlook is conservative, with the company guiding EPS 7% below the Street (at the midpoint of the guidance range),” Piper Jaffray writes. “Maintain OW based on LT catalysts (Windows 7 corporate upgrades, international DTV penetration, increasing inclusion in internet delivered content, and blu-ray adoption), along with a high margin, high visibility model.”

Dolby Laboratories currently trades at $65.85.