Dolby Laboratories (NYSE:DLB) Updates Q4 2025 Earnings Guidance

Key Points

• Dolby Laboratories has updated its fourth quarter 2025 earnings guidance, projecting earnings per share (EPS) between $0.610 and $0.760, which is below the consensus estimate of $0.773.
• The company also provided revenue guidance of $288.0 million to $318.0 million, slightly lower than the consensus revenue estimate of $310.1 million.
• Despite the guidance updates, Dolby's stock price is currently down 0.6%, trading at approximately $75.30.

Dolby Laboratories (NYSE:DLB - Get Free Report) updated its fourth quarter 2025 earnings guidance on Thursday. The company provided earnings per share guidance of 0.610-0.760 for the period, compared to the consensus earnings per share estimate of 0.773. The company issued revenue guidance of $288.0 million-$318.0 million, compared to the consensus revenue estimate of $310.1 million. Dolby Laboratories also updated its FY 2025 guidance to 3.880-4.030 EPS.

Wall Street Analyst Weigh In

Several research firms have issued reports on DLB. Rosenblatt Securities restated a "buy" rating and set a $95.00 price target on shares of Dolby Laboratories in a research report on Friday. Barrington Research restated an "outperform" rating and set a $100.00 price target on shares of Dolby Laboratories in a research report on Friday, May 2nd. Wall Street Zen upgraded shares of Dolby Laboratories from a "hold" rating to a "buy" rating in a research report on Friday, May 30th. Finally, Tigress Financial began coverage on shares of Dolby Laboratories in a research report on Thursday, May 15th. They set a "buy" rating and a $112.00 price target for the company.

Dolby Laboratories Stock Up 2.1%

Shares of Dolby Laboratories stock traded up $1.48 during trading on Monday, reaching $71.57. 59,830 shares of the stock were exchanged, compared to its average volume of 427,291. The stock's fifty day moving average is $74.92 and its 200 day moving average is $77.54. The firm has a market cap of $6.88 billion, a price-to-earnings ratio of 26.23 and a beta of 0.91. Dolby Laboratories has a 1 year low of $66.35 and a 1 year high of $89.66.

Dolby Laboratories (NYSE:DLB - Get Free Report) last posted its earnings results on Thursday, July 31st. The electronics maker reported $0.78 earnings per share for the quarter, topping analysts' consensus estimates of $0.72 by $0.06. The company had revenue of $315.55 million during the quarter, compared to analyst estimates of $305.23 million. Dolby Laboratories had a net margin of 19.62% and a return on equity of 11.52%. Dolby Laboratories's revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.71 earnings per share. Equities analysts forecast that Dolby Laboratories will post 2.94 earnings per share for the current year.

Dolby Laboratories Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 20th. Stockholders of record on Tuesday, August 12th will be issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Tuesday, August 12th. Dolby Laboratories's dividend payout ratio is currently 48.35%.

Insider Transactions at Dolby Laboratories

In other news, EVP Mark Andrew Sherman sold 15,000 shares of the stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $75.02, for a total transaction of $1,125,300.00. Following the completion of the sale, the executive vice president directly owned 62,397 shares in the company, valued at approximately $4,681,022.94. This represents a 19.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Kevin J. Yeaman sold 2,491 shares of the stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $75.00, for a total transaction of $186,825.00. Following the sale, the chief executive officer owned 114,725 shares of the company's stock, valued at approximately $8,604,375. This represents a 2.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 116,049 shares of company stock valued at $8,713,391. 38.39% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Dolby Laboratories

A number of institutional investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. raised its stake in Dolby Laboratories by 218.8% in the first quarter. Goldman Sachs Group Inc. now owns 249,574 shares of the electronics maker's stock worth $20,043,000 after buying an additional 171,288 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Dolby Laboratories by 5.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 238,216 shares of the electronics maker's stock worth $19,131,000 after buying an additional 12,598 shares in the last quarter. Royal Bank of Canada raised its stake in Dolby Laboratories by 3.5% in the first quarter. Royal Bank of Canada now owns 68,367 shares of the electronics maker's stock worth $5,491,000 after buying an additional 2,298 shares in the last quarter. Finally, Focus Partners Wealth bought a new position in Dolby Laboratories in the first quarter worth about $390,000. 58.56% of the stock is owned by institutional investors.

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.