Dolby Laboratories (NYSE: DLB) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 29 (Q2), Dolby Laboratories beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
Dolby Laboratories tallied revenue of $249.3 million. The seven analysts polled by S&P Capital IQ predicted revenue of $246.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
EPS came in at $0.74. The seven earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. Non-GAAP EPS of $0.74 for Q2 were 19% lower than the prior-year quarter's $0.91 per share. GAAP EPS of $0.60 for Q2 were 26% lower than the prior-year quarter's $0.81 per share.

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

Margin details
For the quarter, gross margin was 90.7%, 20 basis points worse than the prior-year quarter. Operating margin was 33.8%, much worse than the prior-year quarter. Net margin was 24.8%, 910 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $208.9 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $920.4 million. The average EPS estimate is $2.09.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,871 members out of 3,972 rating the stock outperform, and 101 members rating it underperform. Among 1,092 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,075 give Dolby Laboratories a green thumbs-up, and 17 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 $32.33.

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