Can Dolby Laboratories Meet These Numbers?

Dolby Laboratories (NYS: DLB) is expected to report Q1 earnings on Jan. 29. 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's revenues will wane -5.1% and EPS will contract -27.6%.

The average estimate for revenue is $221.6 million. On the bottom line, the average EPS estimate is $0.55.


Revenue details
Last quarter, Dolby Laboratories notched revenue of $224.8 million. 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 details
Last quarter, non-GAAP EPS came in at $0.61. 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.

Recent performance
For the preceding quarter, gross margin was 88.0%, 150 basis points worse than the prior-year quarter. Operating margin was 32.0%, 1,510 basis points worse than the prior-year quarter. Net margin was 22.9%, 950 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $918.4 million. The average EPS estimate is $2.29.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,930 members out of 4,032 rating the stock outperform, and 102 members rating it underperform. Among 1,125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,104 give Dolby Laboratories a green thumbs-up, and 21 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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The article Can Dolby Laboratories Meet These Numbers? originally appeared on Fool.com.

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. The Motley Fool recommends 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.

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