Dolby Laboratories's Earnings: A Preview

Dolby Laboratories DLB is preparing to release its quarterly earnings on Tuesday, 2024-11-19. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Dolby Laboratories to report an earnings per share (EPS) of $0.70.

Anticipation surrounds Dolby Laboratories's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.12, leading to a 7.18% drop in the share price on the subsequent day.

Here's a look at Dolby Laboratories's past performance and the resulting price change:

Performance of Dolby Laboratories Shares

Shares of Dolby Laboratories were trading at $71.73 as of November 15. Over the last 52-week period, shares are down 14.65%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Observations about Dolby Laboratories

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Dolby Laboratories.

With 1 analyst ratings, Dolby Laboratories has a consensus rating of Outperform. The average one-year price target is $100.0, indicating a potential 39.41% upside.

Analyzing Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of OneStream, UiPath and CommVault Systems, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Outperform trajectory for OneStream, with an average 1-year price target of $36.0, implying a potential 49.81% downside.
• UiPath received a Neutral consensus from analysts, with an average 1-year price target of $15.55, implying a potential 78.32% downside.
• CommVault Systems received a Buy consensus from analysts, with an average 1-year price target of $185.67, implying a potential 158.85% upside.

Overview of Peer Analysis

In the peer analysis summary, key metrics for OneStream, UiPath and CommVault Systems are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Dolby Laboratories ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

All You Need to Know About Dolby Laboratories

Dolby Laboratories Inc develops audio and surround sound for cinema, broadcast, home audio systems, in-car entertainment systems, DVD players, games, televisions, and personal computers. The company generates three fourths of its revenue from licensing its technology to consumer electronics manufacturers around the world. The rest of revenue comes from equipment sales to professional producers and audio engineering services.

Dolby Laboratories: A Financial Overview

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Dolby Laboratories faced challenges, resulting in a decline of approximately -3.2% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Dolby Laboratories's net margin is impressive, surpassing industry averages. With a net margin of 13.31%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Dolby Laboratories's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.58%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Dolby Laboratories's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.28%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.02.

To track all earnings releases for Dolby Laboratories visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.