DTS Has Solid 4Q Earnings And Outlook

According to Deutsche Bank, DTS Inc. DTSI saw solid 4Q earnings and outlook. Deutsche Bank reported that it views DTS' 4Q results and outlook as solid as ex-royalty catch-up revenue growth was a strong +34% y/y. DTS is benefitting from mainstream Bluray adoption and some initial success in emerging opportunities like streaming media. “2011 guidance embeds 20% revenue growth, which we think is conservative. We are maintaining our street high 2011 pro forma estimates and think further upside potential exists with faster network connected adoption or Blu-ray PC penetration. We reiterate our Buy rating and $50 target.” DTS closed yesterday at $45.35.