Dolby Laboratories (NYSE:DLB) Releases Q1 2025 Earnings Guidance

Dolby Laboratories (NYSE:DLB) issued an update on its first quarter 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.960-1.110 for the period, compared to the consensus estimate of 0.700. The company issued revenue guidance of $330.0 million-$360.0 million, compared to the consensus revenue estimate of $307.9 million. Dolby Laboratories also updated its FY 2025 guidance to 3.990-4.140 EPS.

Dolby Laboratories Trading Down 2.0 %

Shares of DLB opened at $80.31 on Friday. The firm has a market capitalization of $7.66 billion, a price-to-earnings ratio of 29.63 and a beta of 0.98. The firm’s fifty day simple moving average is $74.15 and its 200-day simple moving average is $76.08. Dolby Laboratories has a twelve month low of $66.35 and a twelve month high of $90.06.

Dolby Laboratories Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 10th. Shareholders of record on Tuesday, December 3rd will be paid a $0.33 dividend. This is a positive change from Dolby Laboratories’s previous quarterly dividend of $0.30. This represents a $1.32 annualized dividend and a yield of 1.64%. The ex-dividend date of this dividend is Tuesday, December 3rd. Dolby Laboratories’s dividend payout ratio is currently 44.28%.

Dolby Laboratories announced that its Board of Directors has approved a stock buyback program on Wednesday, August 7th that authorizes the company to buyback $350.00 million in outstanding shares. This buyback authorization authorizes the electronics maker to purchase up to 5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Analysts Set New Price Targets

Several research analysts have commented on the company. StockNews.com raised Dolby Laboratories from a “buy” rating to a “strong-buy” rating in a research report on Monday. Rosenblatt Securities upped their price target on shares of Dolby Laboratories from $98.00 to $100.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Barrington Research reiterated an “outperform” rating and set a $100.00 price target on shares of Dolby Laboratories in a research note on Wednesday.

Insider Transactions at Dolby Laboratories

In related news, CEO Kevin J. Yeaman sold 28,512 shares of Dolby Laboratories stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $74.12, for a total transaction of $2,113,309.44. Following the completion of the transaction, the chief executive officer now directly owns 83,721 shares of the company’s stock, valued at approximately $6,205,400.52. The trade was a 25.40 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 39.54% of the company’s stock.

About Dolby Laboratories

Dolby Laboratories, Inc creates audio and imaging technologies that transform entertainment at the cinema, DTV transmissions and devices, mobile devices, OTT video and music services, home entertainment devices, and automobiles. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, a digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and various media devices.