Dolby Laboratories Inc DLB is slated to report fourth-quarter fiscal 2024 results on Nov. 19.
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The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $305.8 million, which implies growth of 5.3% from the year-ago quarter’s reported figure. DLB expects revenues in the range of $300-$320 million.
For the fourth quarter of fiscal 2024, Dolby expects non-GAAP EPS to be between 61 cents and 76 cents. The consensus mark for earnings is pegged at 68 cents per share, indicating a year-over-year increase of 4.6%.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 16.8%.
Factors to Note for DLB’s Q4 Release
Steady momentum across Dolby Atmos, imaging patents and Dolby Vision is likely to cushion fourth-quarter top-line performance.
However, soft device shipments and sluggish box office performance remain overhangs on both licensing and products and services revenues. For the fourth quarter, DLB expects Licensing revenues to be in the range of $275 million to $295 million.
Our estimate for Licensing revenues is pegged at $282.2 million, up 6.4% on a year-over-year basis.
Dolby Laboratories Price and EPS Surprise
Dolby Laboratories price-eps-surprise | Dolby Laboratories Quote
Owing to an uncertain market environment, lower unit shipments and sluggish cinema revenues, management now anticipates full-year revenues to be between $1.27 billion and $1.29 billion. This is at the lower end of the range of "roughly flat" revenue growth which Dolby had been expecting throughout the year.
We expect full-year revenues to be $1.274 billion, down 2% on a year-over-year basis.
Further for fiscal 2024, Dolby predicts the GAAP operating margin to be 20%, while the non-GAAP operating margin is estimated to be nearly 31%. On a GAAP basis, operating expenses are now anticipated to be between $875 million and $885 million, whereas, on a non-GAAP basis, the metric is estimated in the range of $735-$745 million.
The company expects non-GAAP EPS within the $3.60-$3.75 range. Our estimate for the bottom line is pegged at $3.66, up 2.9% year over year.
What Our Model Says About DLB
Our proven model does not predict an earnings beat for DLB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but this is not the case here.
DLB has an Earnings ESP of -1.47% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
GDS Holdings Limited GDS currently has an Earnings ESP of +4.76% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GDS is scheduled to report quarterly earnings on Nov.19. The Zacks Consensus Estimate for GDS’ to-be-reported quarter’s bottom line is pegged at a loss of 21 cents. The consensus estimate for revenues is pegged at $415.4 million. Shares of GDS have gained 86.6% in the past year.
Walmart Inc. WMT presently has an Earnings ESP of +1.44% and a Zacks Rank #3. WMT is scheduled to report quarterly numbers on Nov. 19. The Zacks Consensus Estimate for Walmart’s to-be-reported quarter’s earnings and revenues is pegged at 53 cents per share and $167.5 billion, respectively. Shares of WMT have gained 62.7% in the past year.
NVIDIA Corporation NVDA has an Earnings ESP of +1.70% and a Zacks Rank #1 at present. NVDA is scheduled to report quarterly figures on Nov. 20. The Zacks Consensus Estimate for NVDA’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $32.95 billion, respectively. Shares of NVDA have increased 181.7% in the past year
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