Dolby Laboratories (NYSE:DLB) Announces Earnings Results, Beats Estimates By $0.16 EPS

Dolby Laboratories (NYSE:DLB) announced its earnings results on Thursday. The electronics maker reported $1.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.90 by $0.16, FiscalAI reports. Dolby Laboratories had a net margin of 18.90% and a return on equity of 11.99%. The business had revenue of $346.71 million for the quarter, compared to analyst estimates of $341.26 million.

Here are the key takeaways from Dolby Laboratories’ conference call:

• Revenue was $347 million and non‑GAAP EPS was $1.06, both above the high end of guidance for Q1, helped by earlier‑than‑expected deals and a $7 million favorable true‑up.
• Dolby raised full‑year guidance to $1.4B–$1.45B revenue and non‑GAAP EPS to $4.30–$4.45, with licensing now expected at $1.295B–$1.345B.
• Automotive is a major growth driver—Dolby now has partnerships with over 35 OEMs, announced Qualcomm Gen5 integration, and saw Dolby Atmos/Vision launches from Mahindra and Hyundai.
• Dolby Vision 2 showed strong CES reception and streaming/social momentum (Peacock, Canal+ launch partners; Meta expanded to Facebook; Douyin Android rollout), with first Dolby Vision 2 TVs expected by year‑end, expanding TV and mobile opportunities.
• The company took a $10 million restructuring charge and flagged potential headwinds from memory pricing and expected declines in foundational/PC/CE end markets, creating near‑term risks to growth.

Dolby Laboratories Stock Up 2.8%

DLB stock traded up $1.70 during midday trading on Thursday, reaching $62.89. 1,875,538 shares of the company’s stock traded hands, compared to its average volume of 759,702. The company has a 50-day simple moving average of $65.20 and a two-hundred day simple moving average of $69.00. Dolby Laboratories has a 1-year low of $60.14 and a 1-year high of $89.66. The company has a market cap of $6.01 billion, a price-to-earnings ratio of 23.91 and a beta of 0.88.

Dolby Laboratories Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Tuesday, December 2nd were given a dividend of $0.36 per share. This is a boost from Dolby Laboratories’s previous quarterly dividend of $0.33. The ex-dividend date was Tuesday, December 2nd. This represents a $1.44 dividend on an annualized basis and a yield of 2.3%. Dolby Laboratories’s dividend payout ratio is currently 54.75%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Wall Street Zen raised shares of Dolby Laboratories from a “hold” rating to a “buy” rating in a research report on Monday, January 5th. Barrington Research lowered their price target on Dolby Laboratories from $95.00 to $90.00 and set an “outperform” rating on the stock in a research note on Monday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Dolby Laboratories in a report on Monday, December 29th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $85.00 price objective on shares of Dolby Laboratories in a report on Thursday, January 22nd. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Dolby Laboratories has a consensus rating of “Moderate Buy” and an average target price of $90.75.

Insiders Place Their Bets

In other news, EVP Mark Andrew Sherman sold 9,109 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $66.73, for a total transaction of $607,843.57. Following the sale, the executive vice president owned 73,054 shares in the company, valued at approximately $4,874,893.42. This represents a 11.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP John D. Couling sold 7,273 shares of Dolby Laboratories stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $68.75, for a total value of $500,018.75. Following the completion of the transaction, the senior vice president directly owned 108,065 shares of the company’s stock, valued at $7,429,468.75. This represents a 6.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 137,120 shares of company stock worth $9,184,809 in the last three months. Company insiders own 37.93% of the company’s stock.

Institutional Trading of Dolby Laboratories

Several hedge funds have recently modified their holdings of DLB. Fred Alger Management LLC lifted its position in Dolby Laboratories by 20.4% during the 3rd quarter. Fred Alger Management LLC now owns 3,991 shares of the electronics maker’s stock valued at $289,000 after purchasing an additional 676 shares during the period. Fiduciary Trust Co bought a new stake in shares of Dolby Laboratories during the third quarter worth approximately $201,000. Cresset Asset Management LLC lifted its holdings in Dolby Laboratories by 10.7% in the third quarter. Cresset Asset Management LLC now owns 2,991 shares of the electronics maker’s stock valued at $216,000 after buying an additional 290 shares during the period. B. Riley Wealth Advisors Inc. bought a new position in Dolby Laboratories in the second quarter valued at approximately $206,000. Finally, Tidal Investments LLC bought a new position in Dolby Laboratories in the second quarter valued at approximately $264,000. 58.56% of the stock is owned by institutional investors.

About Dolby Laboratories

Dolby Laboratories, Inc is a global leader in audio and imaging technologies, specializing in the development, licensing and deployment of solutions that enhance entertainment and communications experiences. The company’s core business revolves around creating advanced audio codecs, noise reduction systems and spatial sound technologies for a wide range of applications, including cinema, broadcast, gaming, streaming and personal devices. Dolby’s licensing model enables consumer electronics manufacturers, content creators and service providers to integrate its technologies into products such as televisions, smartphones, home theater systems and set-top boxes.

Among its flagship innovations are Dolby Atmos, an immersive audio format that delivers three-dimensional soundscapes for theaters and home systems; Dolby Digital and Dolby Digital Plus, widely adopted audio compression formats for broadcast and streaming; and Dolby Vision, a high-dynamic-range imaging technology that expands color, contrast and brightness in displays.