Why DTS (DTSI) Stock Is Spiking In After-Hours Trading Today

NEW YORK (TheStreet) -- Shares of DTS Inc. (DTSI) are higher by 6.44% to $20 in after-hours trading on Monday, after the company reported its 2014 second quarter net income was $7 million, or 41 cents per share, compared to a net loss of -$2 million, or -11 cents per share for the year ago period.

The audio technology provider said revenue for the most recent quarter grew to $36.2 million from $27.2 million for the 2013 second quarter.

DTS’ non-GAAP net income was $8 million, or 47 cents per share, versus $2.1 million, or 11 cents per share, for last year’s second quarter.

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“DTS achieved strong revenue and earnings growth in the second quarter, with double-digit organic growth driven by progress in TV and game console markets as well as continued progress on our comprehensive royalty audit program,” said company CEO Jon Kirchner.

Separately, TheStreet Ratings team rates DTS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate DTS INC (DTSI) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and poor profit margins."

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