Factors to Note Ahead of Dolby's (DLB) Q4 Earnings Release
Dolby Laboratories Inc DLB is slated to report fourth-quarter fiscal 2022 results on Nov 17.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $303.6 million, which suggests growth of 6.5% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 70 cents per share, indicating a year-over-year increase of 20.7%.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of 6.1%, on average.
The company expects fiscal fourth-quarter GAAP earnings of 40-55 cents per share and non-GAAP earnings of 68-83 cents per share. Revenues for the quarter are expected to be $295-$325 million.
Dolby Laboratories Price and EPS Surprise
Dolby Laboratories price-eps-surprise | Dolby Laboratories Quote
Factors to Note
The ongoing demand for the company’s Dolby Atmos and Dolby Vision, new licenses and imaging patents is likely to have helped the company's fourth-quarter performance. In the third quarter, Dolby Atmos and Dolby Vision were utilized to broadcast the UEFA Champions League Final on Canal+.
The company expects Dolby Atmos, Dolby Vision and imaging patents revenues for the current year to grow by approximately 35% amid a volatile macroeconomic environment.
The growing popularity of music, mobile media content, gaming and live sports are likely to benefit Dolby Atmos Music. Also, Xiaomi launched its new smartphone with Dolby Vision. Also, the company announced in July 2022, that Dolby Atmos Music is available in China and South Korea through Tencent Music’s QQ Music and Melon, respectively.
The company is likely to benefit from Dolby.io, which is a platform that enables developers to build immersive online experiences. The growing demand for high-quality with ultra-low latency applications is further tailwinds.
Also, continued momentum in Dolby Cinemas and Cinemas product businesses is likely to grow the company’s top line in the to-be-reported quarter.
However, rising inflation and pandemic-induced global supply-chain troubles might have dented the to-be-reported quarter’s performance.
The company has also slashed its fiscal 2022 guidance due to the above-mentioned factors and uncertainty regarding consumer spending. The company now expects non-GAAP earnings of $3.22-$3.37 per share compared with the previous guidance of $3.27-$3.77 per share. Revenues are expected to be in the range of $1.27-$1.30 billion compared with the previous guidance of $1.3-$1.35 billion.
What Our Model Says
Our proven model does not predict an earnings beat for DLB 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.
DPSI has an Earnings ESP of -2.86% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may consider, as our proven model shows that these too have the right mix of elements to beat estimates this time around.
Helmerich & Payne HP has an Earnings ESP of +15.10% and currently has a Zacks Rank #1. Helmerich & Payne is scheduled to report earnings on Nov 17. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Helmerich & Payne’s to-be-reported quarter’s earnings and revenues is pegged at 43 cents per share and $591.35 million, respectively. Helmerich & Payne’s surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 118.2%. Shares of HP increased 48.1% in the past year.
Oaktree Specialty Lending OCSL has an Earnings ESP of +2.70% and currently has a Zacks Rank #2. Oaktree Specialty Lending is scheduled to report earnings on Nov 15.
The Zacks Consensus Estimate for Oaktree Specialty Lending’s to-be-reported quarter’s earnings and revenues is pegged at 19 cents per share and $66.46 million, respectively. Oaktree Specialty Lending’s surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 3.3%. Shares of OCSL lost 11.1% in the past year.
Sociedad Química y Minera SQM has an Earnings ESP of +1.03% and currently has a Zacks Rank #1. Sociedad Química y Minera is scheduled to report earnings on Nov 16.
The Zacks Consensus Estimate for Sociedad Química y Minera’s to-be-reported quarter’s earnings and revenues is pegged at $3.40 per share and $2.83 billion, respectively. Sociedad Química y Minera’s surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 27.2%. Shares of SQM lost 63.1% in the past year.
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