Dolby Laboratories (NYSE: DLB) is expected to report Q3 earnings on Aug. 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Dolby Laboratories' revenues will wane -0.3% and EPS will expand 5.5%.

The average estimate for revenue is $218.3 million. On the bottom line, the average EPS estimate is $0.58.

Revenue details
Last quarter, Dolby Laboratories recorded revenue of $260.3 million. GAAP reported sales were 4.1% higher than the prior-year quarter's $250.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.91. GAAP EPS of $0.81 for Q2 were 13% higher than the prior-year quarter's $0.72 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 90.9%, 230 basis points better than the prior-year quarter. Operating margin was 46.9%, 130 basis points worse than the prior-year quarter. Net margin was 33.9%, 110 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $945.2 million. The average EPS estimate is $2.86.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,962 members out of 4,057 rating the stock outperform, and 95 members rating it underperform. Among 997 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 979 give Dolby Laboratories a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dolby Laboratories is hold, with an average price target of $41.71.