Dolby Gears Up for Q1 Earnings Results: Here's What You Should Know

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$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$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].