Group 1 - Dolby Laboratories reported quarterly earnings of $1.14 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and up from $1.01 per share a year ago [1] - The earnings surprise for this quarter was 6.54%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - The company generated revenues of $357 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.07%, compared to $315.57 million in the same quarter last year [3] Group 2 - The stock has gained approximately 3.2% since the beginning of the year, matching the S&P 500's performance [4] - The current consensus EPS estimate for the upcoming quarter is $1.38 on revenues of $386.67 million, and for the current fiscal year, it is $4.05 on revenues of $1.35 billion [8] - The Audio Video Production industry, to which Dolby Laboratories belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook for the sector [9]

Financial Performance - Total revenue for Q1 FY2025 was $357 million, a 13% increase from $316 million in Q1 FY2024[6] - GAAP net income for Q1 FY2025 was $68 million, or $0.70 per diluted share, compared to $67 million, or $0.69 per diluted share in Q1 FY2024[6] - Non-GAAP net income for Q1 FY2025 was $111 million, or $1.14 per diluted share, up from $99 million, or $1.01 per diluted share in Q1 FY2024[6] - Total revenue for the fiscal quarter ended December 27, 2024, was $356.999 million, a 13.1% increase from $315.574 million in the same quarter of 2023[20] - Licensing revenue reached $330.479 million, representing a 12.5% increase from $293.767 million year-over-year[26] - Operating income increased to $79.880 million, compared to $66.221 million in the prior year, reflecting a 20.5% growth[20] - Net income attributable to Dolby Laboratories, Inc. was $67.822 million, a slight increase from $66.981 million, with diluted earnings per share rising to $0.70 from $0.69[20][27] - Dolby's non-GAAP net income attributable to the company was $110.869 million, compared to $98.640 million in the same quarter last year, indicating strong underlying performance[27] Future Projections - Dolby expects total revenue for Q2 FY2025 to range from $355 million to $385 million[10] - Licensing revenue for Q2 FY2025 is estimated to be between $330 million and $360 million[10] - For the full year FY2025, total revenue is expected to range from $1.33 billion to $1.39 billion[10] - Dolby's effective tax rate is anticipated to be around 20.5% on a GAAP basis and 18.5% on a non-GAAP basis for FY2025[10] - Dolby's operating margins are expected to be roughly 20% on a GAAP basis and 33% on a non-GAAP basis for FY2025[10] Cost Management and Liquidity - Research and development expenses were $66.638 million, slightly down from $67.033 million, indicating a focus on cost management[20] - Cash and cash equivalents increased to $520.821 million from $482.047 million, showing improved liquidity[22] - Total current assets rose to $1.285 billion, up from $1.194 billion, reflecting strong operational performance[22] - The company reported net cash provided by operating activities of $106.779 million, a significant increase from $8.409 million in the previous year[24] Share Repurchase - Dolby repurchased approximately 186,000 shares for about $15 million, with $387 million remaining in stock repurchase authorization[6] Gross Margins - Gross margins are anticipated to be approximately 89% on a GAAP basis and 91% on a non-GAAP basis for Q2 FY2025[10] - Gross profit for the quarter was $316.225 million, up from $283.514 million, resulting in a gross margin of approximately 88.6%[20]

Core Insights - Dolby Laboratories reported strong financial results for Q1 FY2025, with continued momentum in Dolby Atmos and Dolby Vision across various device categories [1][9] - The company announced a cash dividend of $0.33 per share, payable on February 19, 2025 [4] - Dolby's financial outlook for FY2025 includes estimated total revenue ranging from $1.33 billion to $1.39 billion, with licensing revenue estimated between $1.22 billion and $1.28 billion [10] Financial Highlights - Total revenue for Q1 FY2025 was $357 million, up from $316 million in Q1 FY2024, representing a 13% increase [9] - GAAP net income was $68 million or $0.70 per diluted share, compared to $67 million or $0.69 per diluted share in the same quarter last year [9] - Non-GAAP net income for Q1 FY2025 was $111 million or $1.14 per diluted share, compared to $99 million or $1.01 per diluted share in Q1 FY2024 [9] Business Developments - At CES, Dolby's partners announced a variety of new products incorporating Dolby technologies, including soundbars, TVs, and automotive displays [9] - Dolby Atmos was featured in all eight of the 2025 Grammy nominees for Best New Artist, and seven out of eight nominees for Record of the Year and Album of the Year [9] - In 2024, over 80% of the domestic box office and nearly 70% of the global box office came from titles released in Dolby Atmos and Dolby Vision [9] Financial Outlook - For Q2 FY2025, Dolby estimates total revenue to range from $355 million to $385 million, with licensing revenue between $330 million and $360 million [10] - Gross margins are anticipated to be approximately 89% on a GAAP basis and approximately 91% on a non-GAAP basis [10] - Operating expenses are expected to range from $230 million to $240 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis [10]

Core Viewpoint - Dolby Laboratories Inc (DLB) is expected to report its first-quarter fiscal 2025 results on January 29, with anticipated revenue growth and earnings per share (EPS) increase compared to the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for fiscal first-quarter revenues is $346.4 million, reflecting a growth of 9.8% year-over-year [2]. - Dolby expects revenues to be in the range of $330 million to $360 million for the quarter [2]. - The expected non-GAAP EPS is between $0.96 and $1.11, with the consensus estimate at $1.07 per share, indicating a year-over-year increase of 5.9% [2]. Historical Performance - DLB has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 15.4% [3]. - Over the past year, DLB shares have decreased by 4.3%, while the industry has grown by 6.3% [3]. Growth Drivers - Steady momentum in Dolby Atmos, imaging patents, and Dolby Vision is expected to support the company's top-line performance, particularly in music, sports, and automotive sectors [4]. - Synergies from acquisitions, including the acquisition of GE's licensing business and THEO Technologies, are anticipated to enhance DLB's market position and offerings [5]. Licensing Revenue Projections - For the fiscal first quarter, DLB expects Licensing revenues to range from $305 million to $335 million, with an estimate of $319.5 million, representing an 8.8% year-over-year increase [6]. Operational Insights - On a GAAP basis, operating expenses are projected to be between $230 million and $240 million, while non-GAAP operating expenses are expected to be between $190 million and $200 million [9]. - Global macroeconomic challenges and softness in device sales are noted as concerns, although DLB anticipates flat device sales and stabilization in foundational audio technology revenues for fiscal 2025 [7]. Earnings Prediction Model - Current models do not predict an earnings beat for DLB, with an Earnings ESP of -2.50% and a Zacks Rank of 2 (Buy) [10].

Core Viewpoint - The market anticipates Dolby Laboratories (DLB) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Dolby Laboratories is $1.07 per share, reflecting a year-over-year increase of +5.9%, while revenues are projected to be $346.37 million, up 9.8% from the previous year [3]. - The consensus EPS estimate has been revised 0.3% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Dolby is lower than the consensus estimate, resulting in an Earnings ESP of -2.50%, suggesting a bearish outlook from analysts [10][11]. - Despite the negative Earnings ESP, Dolby holds a Zacks Rank of 2, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Dolby exceeded the expected earnings of $0.68 per share by delivering $0.81, resulting in a surprise of +19.12% [12]. - Over the past four quarters, Dolby has consistently beaten consensus EPS estimates [13]. Conclusion - While Dolby Laboratories may not be a strong candidate for an earnings beat based on current estimates, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score emphasizes companies with strong financial health and growth potential [4] - Momentum Score tracks price trends to capitalize on upward or downward movements [5] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores for better selection [9] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings forecasts [11] Company Spotlight: Dolby Laboratories - Dolby Laboratories, a leader in audio and imaging technologies, holds a Zacks Rank of 2 (Buy) and a VGM Score of B [12] - The company is projected to achieve a year-over-year earnings growth of 6.9% for the current fiscal year [12] - Recent upward revisions in earnings estimates have increased the Zacks Consensus Estimate to $4.05 per share, with an average earnings surprise of 15.4% [13]

The Zacks Audio Video Production industry participants are concentrating on the premium segment of the branded products market for business growth. Sony Group Corporation (SONY) , Dolby Laboratories (DLB) and GoPro (GPRO) are likely to benefit from investments in cutting-edge technology solutions that create better communication experiences. The players also stand to gain as they increase focus on direct-to-customer sales channels. Rapid technological advances like 4K, 8K, and immersive audio formats are bo ...

SAN FRANCISCO, Jan. 13, 2025 /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE: DLB), a leader in immersive entertainment experiences, will release financial results for the first quarter (Q1) fiscal year 2025 after the close of regular trading on Wednesday, January 29, 2025.Members of Dolby management will lead a conference call open to all interested parties to discuss Q1 fiscal year 2025 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, January 29, 2025.Access to the tele ...

Dolby will spotlight its latest innovations in automotive, including an exclusive first look at the latest vehicles to support Dolby Atmos and the world's first car to support Dolby Vision along with Dolby AtmosLAS VEGAS, Jan. 7, 2025 /PRNewswire/ -- Dolby Laboratories, a leader in immersive entertainment experiences, today kicked off the start of the 2025 Consumer Electronics Show (CES) with an exhibition of its latest innovations in automotive. Throughout CES, Dolby will showcase its momentum in automotiv ...

Dolby Laboratories, Inc. (DLB) stock has gained 11% in the past month outperforming the S&P 500 composite’s growth 3%.Image Source: Zacks Investment ResearchSan Francisco, CA-based Dolby develops audio and imaging technologies that revolutionize entertainment for user-generated content, TV shows, films, music and gaming.Strengthening top-line performance and emerging new business opportunities are aiding the stock’s trajectory. DLB outpaced estimates in each of the trailing four quarters, with the average s ...