Dolby Q1 revenue beats expectations, helped by strong momentum in Dolby Atmos and Dolby Vision technologies

Overview

• Audio technology firm's fiscal Q1 revenue fell yr/yr but beat analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company repurchased approximately 1 mln shares for $70 mln

Outlook

• Dolby estimates Q2 revenue between $375 mln and $405 mln

• Company expects full-year revenue between $1.4 bln and $1.45 bln

• Dolby anticipates Q2 GAAP gross margins around 90%

Result Drivers

• DOLBY ATMOS AND VISION - Strong momentum in Dolby Atmos and Dolby Vision technologies, driving growth

• AUTOMOTIVE PARTNERSHIPS - Expansion into automotive market with Dolby Atmos in vehicles like Mercedes-Benz and Mahindra

• STREAMING EXPANSION - Peacock's adoption of Dolby's full suite of innovations, including Dolby Vision 2, across live sports

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Dolby Laboratories Inc is $85.00, about 38.9% above its January 28 closing price of $61.19

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn6d0N69a

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