SAN FRANCISCO (AP) -- Shares of Dolby Laboratories Inc. took a hit on Friday after the company reported fiscal third-quarter revenue below Wall Street's expectations and issued a weaker-than-expected revenue outlook for the full year.
The company best known for its audio and video entertainment equipment said late Thursday that it earned $51.5 million, or 48 cents per share, in the April-June period. That's down 17 percent from $61.7 million, or 55 cents per share, in the same period a year earlier.
Adjusted earnings were 57 cents per share in the latest quarter
Revenue rose 5 percent to $219 million from $207.9 million.
Analysts, on average, were expecting earnings of 51 per share on revenue of $218.6 million, according to a poll by FactSet.
For the full fiscal year, Dolby is forecasting earnings of $2.35 to $2.43 per share and adjusted earnings of $2.75 to $2.83 per share. It expects revenue of $900 million to $920 million. The company said its outlook reflects the "challenging global economy."
Analysts were expecting adjusted earnings of $2.58 per share, on average, with estimates ranging from $2.49 to $2.65. Wall Street was expecting revenue of $945.4 million, with estimates ranging from $924.2 million to $958.1 million.
Shares sank $5.19 or 14.5 percent, to $30.61 in afternoon trading. The stock has traded between $25.70 and $45.83 in the past 52 weeks.