Entertainment firm Dolby Laboratories beats Q2 revenue expectations

Overview

• Audio technology firm's fiscal Q2 revenue rose yr/yr, beating analyst expectations

• Company repurchased about 1 mln shares for $65 mln in Q2

• Revenue growth supported by expanded adoption in sports and automotive sectors

Outlook

• Dolby sees Q3 revenue between $295 mln and $325 mln

• Company expects full-year revenue between $1.40 bln and $1.45 bln

• Dolby says macroeconomic and geopolitical uncertainty is reducing visibility into future outlook

Result Drivers

• SPORTS BROADCASTING - Co cited expanded availability of major sporting events like the Super Bowl, Winter Olympics, and T20 Cricket World Cup in Dolby formats as supporting growth

• AUTOMOTIVE INTEGRATION - Launch of Dolby Atmos in new BMW and Lexus vehicles contributed to results

• BROADCAST LICENSING GROWTH - Broadcast market licensing revenue increased to $119 mln from $94 mln yr/yr

Company press release: ID:nPn553jSXa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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 34.4% above its April 29 closing price of $63.26

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

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