Audiovisual technology firm Dolby Laboratories late Thursday delivered mixed results for its fiscal fourth quarter and offered a soft outlook for the current quarter and year ahead. DLB stock fell in extended trading.
The San Francisco-based company earned 9 cents a share on sales of $290.6 million in the quarter ended Sept. 29. Analysts polled by FactSet had expected Dolby earnings of 22 cents a share on sales of $290 million. In the year-earlier period, Dolby earned 28 cents a share on sales of $278.2 million.
However, on an adjusted basis, Dolby's earnings rose 20% to 65 cents a share, topping views for 53 cents. Dolby's non-GAAP earnings exclude restructuring charges.
For the current quarter, Dolby expects to earn 52 cents a share on sales of $315 million. That's based on the midpoint of its guidance. Analysts polled by FactSet were looking for earnings of 78 cents a share on sales of $354 million for the fiscal first quarter.
For the full fiscal year ahead, Dolby forecast earnings of $2.38 a share on sales of $1.3 billion. Wall Street was modeling earnings of $2.89 a share on sales of $1.36 billion.
DLB Stock Falls On Weak Outlook
In after-hours trading on the stock market today, DLB stock sank 4.4% to 83.89. During the regular session Thursday, DLB stock dropped 1% to close at 87.77.
DLB stock has been consolidating for the past 18 weeks with a buy point of 91.02, according to IBD MarketSmith charts.
"We finished our fiscal year on a solid note," Chief Executive Kevin Yeaman said in a news release. "We remain confident in our opportunity to drive long-term growth in TVs, mobile, and automotive as Dolby-enabled content continues to proliferate and attract more consumers."
Dolby makes sight and sound technologies for the entertainment industry and consumer electronics devices. Its products include Dolby Atmos, Dolby Vision, Dolby Cinema and Dolby.io.
Dolby ranks third out of 35 stocks in IBD's Electronics-Miscellaneous Products industry group, according to IBD Stock Checkup. DLB stock has an IBD Composite Rating of 83 out of 99.
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