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Dolby's Q1 Earnings & Revenues Surpass Estimates, Increase Y/Y
DLBDolby Laboratories(DLB) ZACKS·2025-01-30 14:46

Core Viewpoint - Dolby Laboratories, Inc (DLB) reported strong first-quarter fiscal 2025 results, with non-GAAP EPS of 1.14,exceedingtheprioryear′s1.14, exceeding the prior year's 1.01 and surpassing the Zacks Consensus Estimate by 6.5% due to robust revenues and higher gross margins [1][2] Financial Performance - Total revenues reached 357million,anincreasefrom357 million, an increase from 315.6 million in the year-ago quarter, beating the Zacks Consensus Estimate by 3.1% [2] - Gross profit for the quarter was 316.2million,upfrom316.2 million, up from 283.5 million year-over-year, while total operating expenses rose to 236.4millionfrom236.4 million from 217.3 million [9] - Operating income improved to 79.9millioncomparedto79.9 million compared to 66.2 million in the previous year [9] Segmental Performance - Licensing revenues were 330.5million,reflectinga12330.5 million, reflecting a 12% year-over-year increase, bolstered by a 70 million favorable true-up related to fiscal fourth quarter shipments [4] - Products and Services revenues increased by 22% year-over-year to 26.5million[4]−BroadcastLicensingcontributed3526.5 million [4] - Broadcast Licensing contributed 35% to total licensing revenues, with Mobile Licensing, Consumer Electronics, PC Licensing, and Licensing from Other Markets accounting for 19%, 15%, 9%, and 22% respectively [5] Future Outlook - For fiscal 2025, the company anticipates revenues between 1.33 billion and 1.39billion,withGAAPoperatingmarginexpectedat201.39 billion, with GAAP operating margin expected at 20% and non-GAAP operating margin at nearly 33% [13] - The company projects revenues from Dolby Atmos and Dolby Vision, along with imaging patents, to grow around 15%, while foundational audio technology revenues are expected to remain flat year-over-year [2][6] - For the second quarter of fiscal 2025, revenues are estimated to be between 355 million and 385million,withGAAPEPSof77−92centsandnon−GAAPEPSbetween385 million, with GAAP EPS of 77-92 cents and non-GAAP EPS between 1.19 and 1.34[12]ShareholderReturns−Thecompanydeclaredadividendof33centspershare,payableonFebruary19,2025,toshareholdersofrecordonFebruary11,2025[3]−Intherecentquarter,Dolbyrepurchased186,000sharesfor1.34 [12] Shareholder Returns - The company declared a dividend of 33 cents per share, payable on February 19, 2025, to shareholders of record on February 11, 2025 [3] - In the recent quarter, Dolby repurchased 186,000 shares for 15 million, with $387 million remaining under repurchase authorization [11]