Dolby Laboratories Announces Quarterly Dividend of $0.36 (NYSE:DLB)

Key Points

• Dolby Laboratories declared a quarterly dividend of $0.36 per share, payable August 19 to shareholders of record on August 11. The dividend implies an annualized payout of $1.44 and a 2.8% yield, with a 10-year streak of annual increases.
• The company reported quarterly EPS of $0.69, exceeding analyst expectations of $0.67, while revenue of $305 million fell short of estimates and declined 3.3% year over year.
• Dolby’s board authorized a $350 million share-repurchase plan, allowing the company to buy back up to 7% of outstanding shares. The stock opened at $51.69, near its 52-week low of $48.26 and well below its $75.80 high.

Dolby Laboratories (NYSE:DLB - Get Free Report) declared a quarterly dividend on Thursday, July 30th. Investors of record on Tuesday, August 11th will be paid a dividend of 0.36 per share by the electronics maker on Wednesday, August 19th. This represents a c) annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, August 11th.

Dolby Laboratories has raised its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 10 consecutive years. Dolby Laboratories has a dividend payout ratio of 34.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Dolby Laboratories to earn $3.36 per share next year, which means the company should continue to be able to cover its $1.44 annual dividend with an expected future payout ratio of 42.9%.

Dolby Laboratories Stock Down 1.6%

NYSE:DLB opened at $51.69 on Friday. The stock has a market cap of $4.89 billion, a PE ratio of 20.43 and a beta of 0.81. The business's 50-day simple moving average is $52.21 and its two-hundred day simple moving average is $58.58. Dolby Laboratories has a 52 week low of $48.26 and a 52 week high of $75.80.

Dolby Laboratories (NYSE:DLB - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The electronics maker reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.67 by $0.02. The company had revenue of $305.00 million for the quarter, compared to analysts' expectations of $311.96 million. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.The firm's revenue was down 3.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.78 EPS. Dolby Laboratories has set its FY 2026 guidance at 4.250-4.400 EPS and its Q4 2026 guidance at 1.130-1.280 EPS. Sell-side analysts anticipate that Dolby Laboratories will post 3.21 earnings per share for the current fiscal year.

Dolby Laboratories announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 30th that authorizes the company to repurchase $350.00 million in outstanding shares. This repurchase authorization authorizes the electronics maker to purchase up to 7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

About Dolby Laboratories

Dolby Laboratories, Inc is a global leader in audio and imaging technologies, specializing in the development, licensing and deployment of solutions that enhance entertainment and communications experiences. The company's core business revolves around creating advanced audio codecs, noise reduction systems and spatial sound technologies for a wide range of applications, including cinema, broadcast, gaming, streaming and personal devices. Dolby's licensing model enables consumer electronics manufacturers, content creators and service providers to integrate its technologies into products such as televisions, smartphones, home theater systems and set-top boxes.

Among its flagship innovations are Dolby Atmos, an immersive audio format that delivers three-dimensional soundscapes for theaters and home systems; Dolby Digital and Dolby Digital Plus, widely adopted audio compression formats for broadcast and streaming; and Dolby Vision, a high-dynamic-range imaging technology that expands color, contrast and brightness in displays.

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