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Dolby Laboratories's Earnings Outlook

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Benzinga Insights
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Dolby Laboratories (NYSE:DLB) unveils its next round of earnings this Thursday, January 28. Get prepared with Benzinga's ultimate preview for Dolby Laboratories's Q1 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect Dolby Laboratories earnings of $1.04 per share. Revenue will likely be around $345.33 million, according to the consensus estimate. Dolby Laboratories reported a per-share profit of $0.64 when it published results during the same quarter last year. Sales in that period totaled $291.88 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

View more earnings on DLB

The Wall Street estimate would represent a 62.5% increase in the company's earnings. Sales would be up 18.31% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

EPS Estimate

0.34

0.27

1.09

0.49

EPS Actual

0.45

0.86

1.04

0.64

Revenue Estimate

244.44 M

232.61 M

361.35 M

285.81 M

Revenue Actual

271.19 M

246.91 M

351.81 M

291.88 M

Stock Performance

Shares of Dolby Laboratories were trading at $93.19 as of January 26. Over the last 52-week period, shares are up 31.66%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Dolby Laboratories is scheduled to hold the call at 17:00:00 ET and can be accessed here.

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