The 10-second takeaway
For the quarter ended March 30 (Q2), Dolby Laboratories beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Gross margins grew, operating margins contracted, net margins grew.
Dolby Laboratories logged revenue of $260.3 million. The 10 analysts polled by S&P Capital IQ expected a top line of $253.0 million on the same basis. 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 came in at $0.91. The eight earnings estimates compiled by S&P Capital IQ forecast $0.80 per share. 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.
For the 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.
Next quarter's average estimate for revenue is $219.4 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $943.4 million. The average EPS estimate is $2.86.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,981 members out of 4,075 rating the stock outperform, and 95 members rating it underperform. Among 1,157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,138 give Dolby Laboratories a green thumbs-up, and 19 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.
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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.