Big Beat at Dolby

Dolby Laboratories (DLB Quote - Cramer on DLB - Stock Picks) beat second-quarter earnings targets and guided in line for the year.

For the quarter ended March 31, the San Francisco-based audio technology shop made $39 million, or 34 cents a share, up from the year-ago $28 million, or 25 cents a share. Revenue rose 23% from a year ago to $129 million.

Analysts surveyed by Thomson Financial were looking for a 27-cent profit on sales of $116 million.

"We have made great progress extending Dolby technologies into newer markets, such as digital television," said CEO Bill Jasper. "We continue to work closely with content producers and consumer electronics manufacturers to promote the creation and playback of an immersive digital experience through Dolby technologies, whether in DVD, broadcast, personal computer, gaming, digital cinema, or portable devices."

The company guided to full-year earnings of 95 cents to $1 a share on revenue of $435 million to $450 million. Analysts were looking for a 96-cent profit on sales of $442 million.

Shares surged 8% late Wednesday to $37.90.