Dolby (DLB) Beats On Q3 Earnings And Revenues, View Intact
Zacks Investment Research | Jul 26, 2017 08:49AM ET
Dolby Laboratories, Inc.’s (NYSE:DLB) third-quarter fiscal 2017 adjusted earnings per share came in at 75 cents, which beat the Zacks Consensus Estimate of 65 cents by 15.3%.
The company’s non-GAAP earnings were up 13.2% to 86 cents on a year-over-year basis, steering past the projected range of 75–81 cents. The earnings growth is attributable to lower effective tax rate and an impressive top-line performance.
Inside the Headlines
Total revenue of $305.7 million beat the Zacks Consensus Estimate of $297 million and was up 10.1% on a year-over-year basis. Healthy increase in revenues across all the three segments namely, Licensing, Products and Revenues contributed to the decent rise in the top line.
The company’s Licensing revenues were up 9.9% to $278.1 million year over year. Solid growth in Mobile devices (up 18%) and Consumer Electronics (up 15%) sales drove Licensing revenues. While, higher revenues in DMAs and sound bars drove Consumer Electronic sales, Mobile devices grew on the back of higher recoveries. Broadcast revenues increased 3%, thus adding to growth.
Licensing in “other markets” was up a robust 33% in the reported quarter thanks to decent performance by Dolby Cinema and higher recoveries.
In the fiscal third quarter, Product revenues came in at $22.6 million, up 9.7% on a year-over-year basis. Further, the Services segment rose 25.6% year over year to $4.9 million. Growing demand from exhibitors for digital cinema products increased the Products and Services sales.
During the reported quarter, operating margin of Dolby expanded 200 basis points (bps) to 31.3%.
Dolby Laboratories Price, Consensus and EPS Surprise
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