The 10-second takeaway
For the quarter ended Sep. 28 (Q4), Dolby Laboratories beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Dolby Laboratories recorded revenue of $224.8 million. The nine analysts polled by S&P Capital IQ wanted to see revenue of $209.9 million on the same basis. GAAP reported sales were 7.8% lower than the prior-year quarter's $243.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.61. The seven earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. GAAP EPS of $0.49 for Q4 were 32% lower 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.
For the quarter, gross margin was 88.0%, 150 basis points worse than the prior-year quarter. Operating margin was 31.8%, 1,530 basis points worse than the prior-year quarter. Net margin was 22.9%, 950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $224.8 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $909.1 million. The average EPS estimate is $2.68.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,971 members out of 4,066 rating the stock outperform, and 95 members rating it underperform. Among 1,082 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,067 give Dolby Laboratories a green thumbs-up, and 15 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 $37.50.
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