Q3 EPS Estimate for Dolby Laboratories Decreased by Analyst

Key Points

• Zacks Research cut its Q3 2026 EPS estimate for Dolby Laboratories to $0.39 from $0.65, indicating a softer near-term outlook for the company.
• The analyst remained more constructive on longer-term earnings, raising estimates for FY2026, FY2027, and FY2028 EPS, suggesting expectations for continued growth beyond the current quarter.
• Dolby recently beat quarterly expectations, reporting $1.37 EPS on revenue of $395.63 million, while also guiding FY2026 EPS to 4.30-4.45 and Q3 2026 EPS to 0.56-0.71.

Dolby Laboratories (NYSE:DLB - Free Report) - Zacks Research lowered their Q3 2026 earnings per share (EPS) estimates for shares of Dolby Laboratories in a research note issued on Thursday, May 21st. Zacks Research analyst Team now expects that the electronics maker will post earnings per share of $0.39 for the quarter, down from their previous forecast of $0.65. The consensus estimate for Dolby Laboratories' current full-year earnings is $3.22 per share. Zacks Research also issued estimates for Dolby Laboratories' Q4 2026 earnings at $0.91 EPS, FY2026 earnings at $3.16 EPS, Q1 2027 earnings at $0.77 EPS, Q2 2027 earnings at $1.00 EPS, Q3 2027 earnings at $0.58 EPS, Q4 2027 earnings at $0.87 EPS, FY2027 earnings at $3.22 EPS, Q1 2028 earnings at $0.65 EPS, Q2 2028 earnings at $0.90 EPS and FY2028 earnings at $3.40 EPS.

Dolby Laboratories (NYSE:DLB - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The electronics maker reported $1.37 EPS for the quarter, topping analysts' consensus estimates of $1.31 by $0.06. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.The business had revenue of $395.63 million during the quarter, compared to analysts' expectations of $385.80 million. During the same quarter last year, the company posted $1.34 earnings per share. Dolby Laboratories's quarterly revenue was up 7.0% on a year-over-year basis. Dolby Laboratories has set its FY 2026 guidance at 4.300-4.450 EPS and its Q3 2026 guidance at 0.560-0.710 EPS.

A number of other equities analysts have also recently commented on the company. Weiss Ratings reiterated a "hold (c-)" rating on shares of Dolby Laboratories in a report on Friday, March 27th. Wall Street Zen cut Dolby Laboratories from a "buy" rating to a "hold" rating in a report on Saturday, January 31st. Rosenblatt Securities reiterated a "buy" rating and set a $85.00 price target on shares of Dolby Laboratories in a report on Friday, January 30th. Finally, Barrington Research restated an "outperform" rating and set a $90.00 price objective on shares of Dolby Laboratories in a research report on Monday, April 27th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $90.75.

Dolby Laboratories Stock Performance

Dolby Laboratories stock opened at $56.64 on Wednesday. Dolby Laboratories has a 52 week low of $52.45 and a 52 week high of $77.00. The stock has a market capitalization of $5.36 billion, a P/E ratio of 22.39 and a beta of 0.86. The stock has a 50-day simple moving average of $59.79 and a 200 day simple moving average of $63.20.

Dolby Laboratories Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 20th. Shareholders of record on Tuesday, May 12th were given a dividend of $0.36 per share. The ex-dividend date was Tuesday, May 12th. This represents a $1.44 annualized dividend and a yield of 2.5%. Dolby Laboratories's dividend payout ratio (DPR) is 56.92%.

Insiders Place Their Bets

In other Dolby Laboratories news, CFO Robert J. Park sold 4,895 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $56.68, for a total transaction of $277,448.60. Following the completion of the sale, the chief financial officer directly owned 81,490 shares in the company, valued at $4,618,853.20. This trade represents a 5.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP John D. Couling sold 7,666 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $57.55, for a total transaction of $441,178.30. Following the sale, the senior vice president owned 118,353 shares of the company's stock, valued at $6,811,215.15. This trade represents a 6.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 20,249 shares of company stock worth $1,157,434 over the last three months. Insiders own 37.93% of the company's stock.

Institutional Investors Weigh In On Dolby Laboratories

A number of hedge funds and other institutional investors have recently made changes to their positions in DLB. Boothbay Fund Management LLC boosted its stake in shares of Dolby Laboratories by 4.1% in the second quarter. Boothbay Fund Management LLC now owns 4,020 shares of the electronics maker's stock valued at $299,000 after buying an additional 157 shares during the period. Covestor Ltd boosted its stake in shares of Dolby Laboratories by 6.0% in the fourth quarter. Covestor Ltd now owns 3,088 shares of the electronics maker's stock valued at $198,000 after buying an additional 175 shares during the period. Fifth Third Bancorp boosted its stake in shares of Dolby Laboratories by 34.7% in the fourth quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker's stock valued at $48,000 after buying an additional 192 shares during the period. State of Michigan Retirement System boosted its stake in shares of Dolby Laboratories by 1.4% in the first quarter. State of Michigan Retirement System now owns 14,700 shares of the electronics maker's stock valued at $883,000 after buying an additional 200 shares during the period. Finally, Gabelli Funds LLC boosted its stake in shares of Dolby Laboratories by 0.4% in the third quarter. Gabelli Funds LLC now owns 49,143 shares of the electronics maker's stock valued at $3,556,000 after buying an additional 202 shares during the period. 58.56% of the stock is currently owned by institutional investors and hedge funds.

More Dolby Laboratories News

Here are the key news stories impacting Dolby Laboratories this week:

• Positive Sentiment: Zacks Research raised estimates for multiple periods, including FY2026 EPS to $3.16, FY2027 EPS to $3.22, and FY2028 EPS to $3.40, signaling improved long-term earnings expectations.
• Positive Sentiment: Near-term forecasts were also increased for Q4 2026, Q1 2027, Q2 2027, Q4 2027, Q1 2028 and Q2 2028, which may support sentiment around Dolby’s ability to sustain growth. Article Link
• Neutral Sentiment: One offsetting change was a lower Q3 2026 EPS estimate, which was cut to $0.39 from $0.65, suggesting some near-term variability despite the broader upgrade trend.

Dolby Laboratories Company Profile

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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