Dolby Laboratories (NYSE:DLB – Free Report) – Zacks Research cut their Q4 2026 earnings per share (EPS) estimates for Dolby Laboratories in a research note issued to investors on Thursday, August 20th. Zacks Research analyst Team now expects that the electronics maker will earn $0.87 per share for the quarter, down from their prior estimate of $0.91. The consensus estimate for Dolby Laboratories’ current full-year earnings is $3.23 per share. Zacks Research also issued estimates for Dolby Laboratories’ Q1 2027 earnings at $0.78 EPS, Q2 2027 earnings at $1.01 EPS, Q3 2027 earnings at $0.57 EPS, Q4 2027 earnings at $0.82 EPS, FY2027 earnings at $3.19 EPS, Q2 2028 earnings at $0.91 EPS, Q3 2028 earnings at $0.86 EPS and FY2028 earnings at $3.38 EPS.
A number of other equities research analysts also recently issued reports on the stock. Weiss Ratings downgraded shares of Dolby Laboratories from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, August 13th. Barrington Research reiterated an “outperform” rating and set a $90.00 target price on shares of Dolby Laboratories in a research report on Monday, June 15th. Rosenblatt Securities reissued a “buy” rating and set a $85.00 price target on shares of Dolby Laboratories in a report on Friday, July 31st. Finally, Wall Street Zen cut Dolby Laboratories from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $83.00.
Dolby Laboratories Trading Down 1.7%
Shares of DLB stock opened at $65.02 on Thursday. Dolby Laboratories has a 12 month low of $48.26 and a 12 month high of $73.78. The stock has a market cap of $6.09 billion, a P/E ratio of 27.67 and a beta of 0.80. The company has a 50 day simple moving average of $55.28 and a two-hundred day simple moving average of $58.52.
Dolby Laboratories (NYSE:DLB – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The electronics maker reported $0.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.67 by $0.02. Dolby Laboratories had a return on equity of 11.08% and a net margin of 16.70%.The business had revenue of $305.00 million during the quarter, compared to the consensus estimate of $311.96 million. During the same period in the previous year, the company posted $0.78 EPS. The business’s quarterly revenue was down 3.3% compared to the same quarter last year. 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.
Institutional Inflows and Outflows
Institutional investors have recently made changes to their positions in the company. Boothbay Fund Management LLC increased its stake in Dolby Laboratories by 4.1% in the 2nd quarter. Boothbay Fund Management LLC now owns 4,020 shares of the electronics maker’s stock worth $299,000 after acquiring an additional 157 shares during the last quarter. Covestor Ltd boosted its position in shares of Dolby Laboratories by 6.0% during the 4th quarter. Covestor Ltd now owns 3,088 shares of the electronics maker’s stock valued at $198,000 after acquiring an additional 175 shares during the last quarter. Fifth Third Bancorp boosted its position in shares of Dolby Laboratories by 34.7% during the 4th quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker’s stock valued at $48,000 after acquiring an additional 192 shares during the last quarter. State of Michigan Retirement System grew its holdings 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 purchasing an additional 200 shares in the last quarter. Finally, Raymond James Financial Inc. grew its holdings in shares of Dolby Laboratories by 1.0% in the second quarter. Raymond James Financial Inc. now owns 24,344 shares of the electronics maker’s stock valued at $1,808,000 after purchasing an additional 235 shares in the last quarter. Hedge funds and other institutional investors own 58.56% of the company’s stock.
Insiders Place Their Bets
In other Dolby Laboratories news, SVP Shriram Revankar sold 3,000 shares of the firm’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $62.71, for a total transaction of $188,130.00. Following the sale, the senior vice president directly owned 73,274 shares of the company’s stock, valued at $4,595,012.54. This trade represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Ryan Nicholson sold 1,348 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $62.04, for a total value of $83,629.92. Following the sale, the chief accounting officer directly owned 35,636 shares in the company, valued at approximately $2,210,857.44. This represents a 3.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 27,705 shares of company stock worth $1,587,692. Corporate insiders own 37.93% of the company’s stock.
Dolby Laboratories Announces Dividend
The company also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Tuesday, August 11th were issued a $0.36 dividend. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $1.44 annualized dividend and a yield of 2.2%. Dolby Laboratories’s dividend payout ratio is currently 61.28%.
Dolby Laboratories declared that its Board of Directors has approved a share repurchase program on Thursday, July 30th that allows the company to repurchase $350.00 million in shares. This repurchase authorization allows the electronics maker to repurchase up to 7% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.
Key Stories Impacting Dolby Laboratories
Here are the key news stories impacting Dolby Laboratories this week:
- Positive Sentiment: Zacks Research raised its FY2026 EPS forecast to $3.17 from $3.16, suggesting slightly better near-term profitability expectations. The estimate remains below the broader consensus of $3.23. Dolby Laboratories analyst estimates
- Positive Sentiment: The firm increased its forecasts for Q1 2027 EPS to $0.78 from $0.77 and Q2 2027 EPS to $1.01 from $1.00, indicating slightly stronger expectations for the first half of fiscal 2027. Dolby Laboratories earnings estimates
- Positive Sentiment: Zacks also raised its Q3 2028 EPS projection to $0.86 from $0.79, although this longer-range revision is less likely to drive immediate trading than current-year estimates. Dolby Laboratories long-term estimates
- Neutral Sentiment: Zacks projects FY2027 EPS of $3.19 and FY2028 EPS of $3.38. These forecasts imply continued earnings generation, but the overall revision trend was not consistently positive.
- Negative Sentiment: Zacks lowered its Q4 2026 EPS estimate to $0.87 from $0.91 and cut its Q3 2027 forecast to $0.57 from $0.58, signaling some weakening in selected upcoming quarters.
- Negative Sentiment: The firm reduced its FY2027 EPS forecast to $3.19 from $3.22 and its FY2028 estimate to $3.38 from $3.40. The FY2027 projection is also slightly below the current full-year consensus of $3.23.
- Negative Sentiment: Dolby’s latest reported quarter showed revenue down 3.3% year over year, although EPS of $0.69 exceeded analysts’ $0.67 estimate. The combination of softer revenue and mixed earnings revisions may restrain further upside.
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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