Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dolby (DLB) Q1 Earnings & Revenues Beat Estimates, Down Y/Y

By Zacks Investment ResearchStock MarketsJan 30, 2020 07:27AM ET
www.investing.com/analysis/dolby-dlb-q1-earnings--revenues-beat-estimates-down-yy-200503012
Dolby (DLB) Q1 Earnings & Revenues Beat Estimates, Down Y/Y
By Zacks Investment Research   |  Jan 30, 2020 07:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Dolby Laboratories, Inc. (NYSE:DLB) reported relatively lackluster first-quarter fiscal 2020 (ended Dec 27, 2019) results with year-over-year decrease in revenues and earnings on higher operating expenses. However, both the bottom and top lines surpassed the Zacks Consensus Estimate.

Net Income

On a GAAP basis, net income was $48.8 million or 47 cents per share compared with $98.2 million or 93 cents per share in the year-ago quarter. The significant decline in earnings was primarily attributable to lower revenues, higher operating expenses and income tax benefit in the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate by 17 cents.

Non-GAAP net income came in at $65.5 million or 64 cents per share compared with $78.7 million or 74 cents per share in the prior-year quarter.

Dolby Laboratories Price, Consensus and EPS Surprise

Revenues

Total revenues were $291.9 million, down from $302.4 million in the year-ago quarter, primarily due to decline in revenues in Licensing and Products and services segments despite higher adoption of Dolby Vision and Dolby Atmos technology. However, the top line surpassed the Zacks Consensus Estimate of $286 million.

Segmental Performance

Revenues from Licensing were $257.7 million, down 1% year over year, owing to lower revenues in Broadcast business. Sales from Consumer Electronics increased 12%, driven by higher adoption of Dolby Vision and Dolby Atmos coupled with higher volume. Mobile Devices represented 13% of total licensing. Sales from PC surged 38% year over year, mainly driven by higher recoveries with increased adoption of Dolby technologies, but the same from Licensing in other markets fell nearly 32% due to lower recoveries in automotive.

Products and services revenues came in at $34.2 million, down 18.8%, primarily due to the impact of hybrid deals in the Cinema business in the prior-year quarter.

Other Details

Gross profit in the fiscal first quarter was $254.6 million compared with $263.7 million in the year-earlier quarter. Total operating expenses increased 5.6% to $206 million, primarily due to restructuring charges. Operating income was $48.6 million compared with $68.7 million a year ago.

Cash Flow and Liquidity

In the first three months of fiscal 2020, Dolby generated $31.2 million of net cash from operating activities compared with $57 million in the year-ago quarter. As of Dec 27, 2019, the company had $741.4 million in cash and equivalents with $179.2 million of non-current liabilities.

Guidance

Dolby has provided guidance for second-quarter fiscal 2020. The company expects GAAP earnings per share in the range of 97 cents to $1.03 and non-GAAP earnings per share in the range of $1.15-$1.21, while revenues are anticipated to be $370-$390 million.

In addition, the company offered guidance for fiscal 2020. It currently estimates total revenues to be in the $1.30-$1.35 billion band. While GAAP gross margin is expected to be in the range of 87-88%, non-GAAP gross margin is projected to be 88-89%. The company expects GAAP earnings per share in the range of $2.64-$2.74 and non-GAAP earnings per share of $3.40-$3.50.

Zacks Rank & Stocks to Consider

Dolby currently has a Zacks Rank #4 (Sell).

Few top-ranked stocks in the broader industry are Sony Corporation (NYSE:SNE) , The E.W. Scripps Company (NASDAQ:SSP) and TEGNA Inc. (NYSE:TGNA) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sony surpassed earnings estimates in each of the trailing four quarters, the positive surprise being 86.9%, on average.

E.W. Scripps surpassed earnings estimates twice in the trailing four quarters, the positive surprise being 24.4%, on average.

TEGNA surpassed earnings estimates thrice in the trailing four quarters, the positive surprise being 6%, on average.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>



Dolby Laboratories (DLB): Free Stock Analysis Report

Sony Corporation (SNE): Free Stock Analysis Report

E.W. Scripps Company (The) (SSP): Free Stock Analysis Report

TEGNA Inc. (TGNA): Free Stock Analysis Report

Original post

Zacks Investment Research
Dolby (DLB) Q1 Earnings & Revenues Beat Estimates, Down Y/Y
 

Related Articles

Dolby (DLB) Q1 Earnings & Revenues Beat Estimates, Down Y/Y

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email