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Dolby's (DLB) Q2 Earnings & Revenues Beat Estimates, Up Y/Y
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Dolby Laboratories, Inc (DLB - Free Report) reported second-quarter fiscal 2023 results, with the top and bottom lines surpassing the Zacks Consensus Estimate.
Non-GAAP earnings per share were $1.26 compared with 92 cents reported in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 29.9%.
Total revenues were $375.9 million, up from $334.4 million in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate by 8.3%. The uptick was caused by revenue growth across all business segments and increased adoption of Dolby Atmos and Dolby Vision.
The company announced a dividend of 27 cents per share, payable on May 23, to shareholders of record on May 16.
Dolby Laboratories Price, Consensus and EPS Surprise
Revenues from Licensing were $351.6 million, up from $313.8 million reported in the prior-year quarter. Products and Services’ revenues were $24.2 million compared with $20.5 million reported in the year-ago quarter.
Broadcast Licensing contributed 37% to the total licensing revenues in the second quarter. Mobile Licensing accounted for 26%, Consumer Electronics 12%, PC Licensing 12% and Licensing from Other Markets contributed 13% to licensing revenues.
Other Details
Gross profit in the second quarter was $334.8 million compared with $298.8 million in the year-earlier quarter. Total operating expenses marginally declined to $225.8 million from $255.5 million reported in the previous-year quarter. Operating income was $109.2 million compared with $43.4 million in the year-ago quarter.
In the fiscal second quarter, the company repurchased 0.6 million of its common shares and ended the quarter with $262 million of stock repurchase authorization.
Cash Flow and Liquidity
In the fiscal second quarter, Dolby generated $104.5 million of net cash from operating activities compared with $63 million a year ago.
As of Mar 31, 2023, the company had $688.4 million in cash and cash equivalents, with $480.1 million in total liabilities.
Guidance
For the third quarter of fiscal 2023, the company expects GAAP earnings of 18-33 cents per share and non-GAAP earnings of 47-62 cents per share on revenues of $285-$315 million. On a GAAP basis, operating expenses are expected to be $227-$237 million, whereas, on a non-GAAP basis, operating expenses are anticipated to be $195-$205 million.
For fiscal 2023, the company expects revenues in the range of $1.27-$1.33 billion. GAAP operating margin is expected to be 19%, while the non-GAAP operating margin is expected to be nearly 30%. On a GAAP basis, operating expenses are expected to decline by 2%, whereas, on a non-GAAP basis, operating expenses are anticipated to increase by 2%.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 1.8% in the past 60 days to $1.71 per share. The long-term earnings growth rate is anticipated to be 11.5%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.4%. Shares of DBX have increased 29% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have increased 122.4% in the past year.
The Zacks Consensus Estimate for Enfusion’s 2023 earnings has increased 5.6% in the past 60 days to 19 cents per share.
Enfusion’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, the average surprise being 18.8%. Shares of the company have increased 3.2% in the past year.
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Dolby's (DLB) Q2 Earnings & Revenues Beat Estimates, Up Y/Y
Dolby Laboratories, Inc (DLB - Free Report) reported second-quarter fiscal 2023 results, with the top and bottom lines surpassing the Zacks Consensus Estimate.
Non-GAAP earnings per share were $1.26 compared with 92 cents reported in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 29.9%.
Total revenues were $375.9 million, up from $334.4 million in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate by 8.3%. The uptick was caused by revenue growth across all business segments and increased adoption of Dolby Atmos and Dolby Vision.
The company announced a dividend of 27 cents per share, payable on May 23, to shareholders of record on May 16.
Dolby Laboratories Price, Consensus and EPS Surprise
Dolby Laboratories price-consensus-eps-surprise-chart | Dolby Laboratories Quote
Segmental Performance
Revenues from Licensing were $351.6 million, up from $313.8 million reported in the prior-year quarter. Products and Services’ revenues were $24.2 million compared with $20.5 million reported in the year-ago quarter.
Broadcast Licensing contributed 37% to the total licensing revenues in the second quarter. Mobile Licensing accounted for 26%, Consumer Electronics 12%, PC Licensing 12% and Licensing from Other Markets contributed 13% to licensing revenues.
Other Details
Gross profit in the second quarter was $334.8 million compared with $298.8 million in the year-earlier quarter. Total operating expenses marginally declined to $225.8 million from $255.5 million reported in the previous-year quarter. Operating income was $109.2 million compared with $43.4 million in the year-ago quarter.
In the fiscal second quarter, the company repurchased 0.6 million of its common shares and ended the quarter with $262 million of stock repurchase authorization.
Cash Flow and Liquidity
In the fiscal second quarter, Dolby generated $104.5 million of net cash from operating activities compared with $63 million a year ago.
As of Mar 31, 2023, the company had $688.4 million in cash and cash equivalents, with $480.1 million in total liabilities.
Guidance
For the third quarter of fiscal 2023, the company expects GAAP earnings of 18-33 cents per share and non-GAAP earnings of 47-62 cents per share on revenues of $285-$315 million. On a GAAP basis, operating expenses are expected to be $227-$237 million, whereas, on a non-GAAP basis, operating expenses are anticipated to be $195-$205 million.
For fiscal 2023, the company expects revenues in the range of $1.27-$1.33 billion. GAAP operating margin is expected to be 19%, while the non-GAAP operating margin is expected to be nearly 30%. On a GAAP basis, operating expenses are expected to decline by 2%, whereas, on a non-GAAP basis, operating expenses are anticipated to increase by 2%.
Zacks Rank & Stocks to Consider
Dolby currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Dropbox (DBX - Free Report) , Badger Meter (BMI - Free Report) and Enfusion (ENFN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 1.8% in the past 60 days to $1.71 per share. The long-term earnings growth rate is anticipated to be 11.5%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.4%. Shares of DBX have increased 29% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have increased 122.4% in the past year.
The Zacks Consensus Estimate for Enfusion’s 2023 earnings has increased 5.6% in the past 60 days to 19 cents per share.
Enfusion’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, the average surprise being 18.8%. Shares of the company have increased 3.2% in the past year.