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Dolby (DLB) to Report Q4 Earnings: What's in the Offing?

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Dolby Laboratories, Inc. (DLB - Free Report) is scheduled to report fourth-quarter fiscal 2019 financial results on Nov 14, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 22.5%. Dolby topped the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, the average positive beat being 2.7%.

The company is likely to report higher consolidated revenues on a year-over-year basis in the quarter under review, on the back of solid licensing business.

For the September quarter, the Zacks Consensus Estimate for total revenues stands at $298 million. The company reported $265 million in the prior-year quarter. Consequently, adjusted earnings per share are pegged at 48 cents. The same was 31 cents posted a year ago.

Takeaways From Q4

During the fiscal fourth quarter, the company continued to see Dolby experiences become increasingly available to more people around the world. At August end, Dolby, in concert with Warner Bros. and AMC Theatres, brought The Matrix — winner of four Academy Awards including Best Sound — to select theaters nationwide for a one-week engagement in Dolby Cinema at AMC. The move was in celebration of the film’s 20-year anniversary. Warner Bros. re-released the motion picture for the first time in Dolby Vision and Dolby Atmos.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Dolby 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 that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Dolby’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 48 cents.

Zacks Rank: Dolby currently has a Zacks Rank #4 (Sell).

Dolby Laboratories Price and EPS Surprise

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Pinduoduo Inc. (PDD - Free Report) is slated to release quarterly results on Nov 20. It has an Earnings ESP of +25.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Spire Inc. (SR - Free Report) is scheduled to release results on Nov 20. The company has an Earnings ESP of +2.55% and carries a Zacks Rank #2.

Lowe's Companies, Inc. (LOW - Free Report) has an Earnings ESP of +1.62% and carries a Zacks Rank of 2. The company is set to report results on Nov 20.

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