Dolby Laboratories (NYSE: DLB) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Dolby Laboratories met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped, and GAAP earnings per share dropped.

Gross margins expanded, operating margins shrank, net margins dropped.

Revenue details
Dolby Laboratories booked revenue of $233.4 million. The 10 analysts polled by S&P Capital IQ expected to see sales of $235.2 million. Sales were 3.8% lower than the prior-year quarter's $242.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.76. The seven earnings estimates compiled by S&P Capital IQ predicted $0.69 per share on the same basis. GAAP EPS of $0.67 for Q1 were 12% lower than the prior-year quarter's $0.76 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 91.3%, 330 basis points better than the prior-year quarter. Operating margin was 43.6%, 170 basis points worse than the prior-year quarter. Net margin was 31.3%, 430 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $255.1 million. On the bottom line, the average EPS estimate is $0.81.

Next year's average estimate for revenue is $946.6 million. The average EPS estimate is $2.85.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,007 members out of 4,104 rating the stock outperform, and 97 members rating it underperform. Among 1,298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,281 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 $35.38.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Dolby Laboratories. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.