Here's What Key Metrics Tell Us About Dolby Laboratories (DLB) Q1 Earnings

Dolby Laboratories (DLB) reported $315.57 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 5.8%. EPS of $1.01 for the same period compares to $1.11 a year ago.

The reported revenue represents a surprise of +1.48% over the Zacks Consensus Estimate of $310.98 million. With the consensus EPS estimate being $0.89, the EPS surprise was +13.48%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Dolby Laboratories performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Products and services: $21.81 million compared to the $26.60 million average estimate based on three analysts. The reported number represents a change of -19% year over year.
  • Revenue- Licensing: $293.77 million compared to the $284.39 million average estimate based on three analysts. The reported number represents a change of -4.6% year over year.
  • Gross Margin- Licensing: $278.03 million versus $270.58 million estimated by three analysts on average.
  • Gross margin- Products and services: $5.48 million versus $4.66 million estimated by three analysts on average.
View all Key Company Metrics for Dolby Laboratories here>>>

Shares of Dolby Laboratories have returned +0.3% over the past month versus the Zacks S&P 500 composite's +2.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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