Dolby Laboratories Sees Q4 EPS $0.61-$0.76 Vs $0.85 Est.; Revenue $300M-$320M Vs $326.6M Est.; FY24 EPS $3.60-$3.75 Vs $3.72 Est.; Revenue $1.27B-$1.29B Vs $1.29B Est.

Author: Benzinga Newsdesk | August 07, 2024 04:58pm

Financial Outlook

Dolby's financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced its visibility into Dolby's future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see "Forward-Looking Statements" in this press release for a description of certain risks that Dolby faces, and the section captioned "Risk Factors" in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2024, to be filed on or around the date hereof.

Dolby is providing the following estimates for its fourth quarter of fiscal 2024:

• Total revenue is estimated to range from $300 million to $320 million.
• Licensing revenue is estimated to range from $275 million to $295 million.
• Gross margins are anticipated to be approximately 88%.
• Operating expenses are anticipated to range from $225 million to $235 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis.
• Effective tax rate is anticipated to be around 29% on a GAAP basis and around 23% on a non-GAAP basis.
• Diluted earnings per share is anticipated to range from $0.31 to $0.46 on a GAAP basis and from $0.61 to $0.76 on a non-GAAP basis.

Dolby is providing the following estimates for the full year of fiscal 2024:

• Total revenue is expected to range from $1.27 billion to $1.29 billion.
• Gross margins are anticipated to be roughly 89%.
• Operating expenses are anticipated to range from $875 million to $885 million on a GAAP basis and from $735 million to $745 million on a non-GAAP basis.
• Dolby expects operating margins on a GAAP basis to be roughly 20% and on a non-GAAP basis to be roughly 31%.
• Diluted earnings per share is anticipated to range from $2.40 to $2.55 on a GAAP basis and from $3.60 to $3.75 on a non-GAAP basis.

Posted In: DLB