SAN FRANCISCO - Dolby Laboratories , Inc. (NYSE:DLB) reported fourth quarter earnings that beat analyst expectations, sending its stock soaring 10.41% in premarket trading on Wednesday.
The audio and imaging technology company posted adjusted earnings per share of $0.81, significantly above the $0.45 consensus estimate.
Revenue for the quarter came in at $305 million, slightly below the $307.94 million analysts were expecting. However, investors focused on Dolby's upbeat guidance for the first quarter of fiscal 2025.
The company forecast Q1 EPS of $0.96 to $1.11, surpassing the $1.09 consensus. Revenue is projected to be between $330 million and $360 million, compared to analyst estimates of $338 million.
"We are pleased with the progress we made in fiscal 2024," said Kevin Yeaman, President and CEO of Dolby Laboratories. "As we enter fiscal 2025, we have strong momentum with Dolby Atmos and Dolby Vision, our imaging patent portfolio has gotten stronger with the GE Licensing acquisition, and we are excited about our opportunity with Dolby.io."
For the full fiscal year 2024, Dolby reported revenue of $1.27 billion, down slightly from $1.30 billion in 2023. Adjusted EPS for the year was $3.79, up from $3.56 in the previous year.
The company's licensing revenue, which makes up the bulk of its business, is expected to range from $305 million to $335 million in Q1 2025. Dolby also anticipates gross margins of approximately 90% on a non-GAAP basis for the quarter.
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