Core Insights - Dolby Laboratories, Inc. is recognized for its innovative sound technologies and competes with companies like NETGEAR, Inc., Morningstar, Inc., Copart, Inc., and MSC Industrial Direct Co., Inc. in financial performance and capital efficiency [1] Financial Performance - Dolby has a Return on Invested Capital (ROIC) of 8.76% and a Weighted Average Cost of Capital (WACC) of 7.63%, resulting in a ROIC to WACC ratio of 1.15, indicating efficient capital utilization [2][6] - Copart, Inc. leads the group with a ROIC to WACC ratio of 1.65, showcasing superior efficiency in generating returns over its cost of capital [3][6] - Morningstar, Inc. and MSC Industrial Direct Co., Inc. have ROIC to WACC ratios of 1.37 and 1.61, respectively, highlighting their strong capital efficiency [4] - NETGEAR, Inc. has a negative ROIC to WACC ratio of -0.69, indicating inefficiency in generating returns above its cost of capital [5][6]

Dolby Laboratories (DLB) closed the last trading session at $63.65, gaining 3.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $89.25 indicates a 40.2% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $19. While the lowest estimate of $68.00 indicates a 6.8% increase from the current price level, the most optimistic analyst e ...

On February 13, 2026, Neo Ivy Capital Management disclosed a new position in Dolby Laboratories (NYSE:DLB), acquiring 117,964 shares in a trade estimated at $7.58 million. What happened Neo Ivy Capital Management reported in a February 13, 2026, SEC filing that it established a new stake in Dolby Laboratories, acquiring 117,964 shares. The estimated transaction value was $7.58 million. What else to know This new position in DLB represents 1.2% of Neo Ivy’s reportable U.S. equity AUM after the fourth q ...

Economic Overview - Consumer sentiment in the U.S. improved to a six-month high of 57.3 in February, up from 56.4 in January, surpassing the consensus estimate of 55 [3][11] - Despite concerns over high prices and a tightening labor market, consumers remain optimistic about inflation easing in the near future [4][5] Consumer Discretionary Stocks - Recommended stocks include Carnival Corporation & plc (CCL), Dolby Laboratories, Inc. (DLB), Marriott International, Inc. (MAR), and Ralph Lauren Corporation (RL) due to positive earnings estimate revisions and strong Zacks rankings [2] - CCL, the largest cruise operator globally, has an expected earnings growth rate of 12.9% for the current year, with earnings estimates improving by 5.8% over the last 60 days [8][11] - DLB, which focuses on audio and imaging technologies, has an expected earnings growth rate of 0.9% for the current year, with estimates up by 1.9% in the past 60 days [10] - MAR, a leading hospitality company, anticipates earnings growth of 15.7%, with estimates increasing by 1% over the last 60 days [11] - RL, a designer and distributor of premium lifestyle products, expects a significant earnings growth rate of 30.5% for the next year, with estimates improving by 5.2% in the past 60 days [13]

Core Insights - Dolby Laboratories, Inc. is recognized for its innovative audio and imaging technologies, which are essential in the entertainment and media sectors [1] - The company competes with NETGEAR, Inc., Copart, Inc., and MSC Industrial Direct Co., Inc. across various financial performance metrics [1] Financial Performance Metrics - Dolby Laboratories has a Return on Invested Capital (ROIC) of 8.76% and a Weighted Average Cost of Capital (WACC) of 7.73), resulting in a ROIC to WACC ratio of 1.13, indicating effective capital utilization [2][4] - NETGEAR, Inc. has a negative ROIC of -5.99% and a WACC of 8.83%, leading to a ROIC to WACC ratio of -0.68, which raises concerns about its ability to generate returns above capital costs [2][4] - Copart, Inc. has a ROIC of 14.43% and a WACC of 8.86%, resulting in a ROIC to WACC ratio of 1.63, while MSC Industrial Direct Co., Inc. has a ROIC of 11.46% and a WACC of 7.23%, yielding a ROIC to WACC ratio of 1.59, both indicating strong capital efficiency [3]

Core Insights - The integration of Source-Connect with Dolby Atmos enhances remote audio collaboration, allowing producers and engineers to work seamlessly without the need for re-renders or limited channel counts, making it suitable for various Dolby Atmos speaker configurations [1][4]. Group 1: Source-Connect Features - Source-Connect is a professional remote audio recording and collaboration software that provides high-quality, low-latency audio streaming, along with features like DAW timeline synchronization [2]. - The new Dolby Atmos integration allows for streaming audio and metadata between multiple Dolby Atmos rendering environments, ensuring perfect synchronization and compliance with Dolby specifications [4]. - Source-Connect's proprietary Remote Transport Sync protocol enables full synchronization between a studio and up to five reviewers and their DAWs [5]. Group 2: Industry Impact - The integration has transformed remote session workflows, allowing for high-quality audio mixing without the need for physical presence, as demonstrated by a successful remote mix for a major streaming title [3][6]. - The solution is currently available for macOS and requires the standalone Dolby Atmos Renderer, which is available for purchase [7]. - Source Elements, the company behind Source-Connect, has been facilitating real-time collaboration in media production since 2005, enhancing the quality and efficiency of multimedia workflows [8]. Group 3: Company Background - Dolby Laboratories is a leader in immersive entertainment, providing innovative technologies like Dolby Atmos, which enhance the audio-visual experience for consumers worldwide [9].

Group 1 - Shares of Dolby Laboratories (DLB) have gained 1% over the past four weeks, closing at $64.19, with a mean price target of $89.25 indicating a potential upside of 39% [1] - The average price targets range from a low of $68.00 to a high of $114.00, with a standard deviation of $19, suggesting variability in analyst estimates [2] - Analysts show strong agreement on DLB's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock upside [4][11] Group 2 - The Zacks Consensus Estimate for DLB's current year earnings has increased by 0.6% over the last 30 days, indicating positive sentiment among analysts [12] - DLB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting strong potential for upside [13] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14]

Company Overview - Dolby Laboratories, Inc. is a prominent player in the audio and imaging industry, recognized for its innovative sound technologies across various platforms including cinemas, home theaters, PCs, mobile devices, and games [1] Financial Performance - Dolby has a Return on Invested Capital (ROIC) of 8.28% and a Weighted Average Cost of Capital (WACC) of 7.90%, resulting in a ROIC to WACC ratio of 1.05, indicating efficient capital utilization with potential for improvement compared to peers [2] - NETGEAR, Inc. has a negative ROIC of -7.78% against a WACC of 8.91%, leading to a ROIC to WACC ratio of -0.87, highlighting inefficiencies in capital utilization [3] - Morningstar, Inc. exhibits a strong ROIC of 15.33% and a WACC of 8.43%, resulting in a ROIC to WACC ratio of 1.82, indicating high efficiency in generating returns over its cost of capital, outperforming Dolby and other peers [4] - Copart, Inc. has a ROIC of 14.43% and a WACC of 8.98%, yielding a ROIC to WACC ratio of 1.61, while MSC Industrial Direct shows a ROIC of 11.46% and a WACC of 7.32%, with a ratio of 1.57, both surpassing Dolby's efficiency [5]

Core Insights - Dolby Laboratories, Inc. (DLB) reported first-quarter fiscal 2026 non-GAAP earnings per share (EPS) of $1.06, exceeding the Zacks Consensus Estimate of 90 cents, but down from $1.14 in the prior-year quarter [1][9] - Total revenues were $346.7 million, a decrease from $357 million in the year-ago quarter, yet surpassing the Zacks Consensus Estimate by 4.2% [2][9] Financial Performance - Licensing revenues were $319.8 million, down 3.2% year over year, but within the company's guidance of $290 million to $320 million [5] - Products and Services revenues increased by 1.6% year over year to $26.9 million [5] - Gross profit for the fiscal first quarter was $303.5 million, compared to $316.2 million in the year-ago quarter, while total operating expenses rose to $241.3 million from $236.3 million [7] Market Outlook - Management expressed optimism about the company's market position and growth opportunities, citing strong momentum in Dolby Atmos and Dolby Vision, as well as an expanding addressable market [3] - For the second quarter of fiscal 2026, the company estimates revenues between $375 million and $405 million, with licensing revenues projected to be between $350 million and $380 million [12] Shareholder Returns - The company repurchased approximately 1 million shares for about $70 million during the first quarter, with roughly $207 million remaining under its stock repurchase authorization [11] - A cash dividend of 36 cents per share was declared, payable on February 18, 2026 [11] Segment Performance - Broadcast Licensing contributed 31% to total licensing revenues, while Mobile Licensing, Consumer Electronics, PC Licensing, and Licensing from Other Markets accounted for 23%, 14%, 9%, and 23% respectively [6] Future Projections - For fiscal 2026, the company expects total revenues to be in the range of $1.4 billion to $1.45 billion, an increase from the prior estimate of $1.39 billion to $1.44 billion [13] - Licensing revenues are projected to range from $1.295 billion to $1.345 billion, up from the previous estimate of $1.285 billion to $1.335 billion [13]

Core Insights - Dolby Laboratories, Inc. is a key player in the audio, video, and voice technology industry, known for innovations like Dolby Atmos and Dolby Vision, and is expanding its market reach [1] Financial Performance - Earnings per share (EPS) reported at $1.06, surpassing the estimated $0.99, representing a 17.78% earnings surprise compared to the Zacks Consensus Estimate of $0.90 [2] - Revenue reported at approximately $346.7 million, exceeding the estimated $341.3 million, marking a 4.19% revenue surprise [3] - EPS shows a slight decrease from $1.14 reported in the same quarter last year, but Dolby has consistently outperformed consensus EPS estimates over the past four quarters [2] - Revenue decreased from $357 million in the previous year, yet Dolby has exceeded consensus revenue estimates in three of the last four quarters [3] Financial Health - The company has a low debt-to-equity ratio of 0.015, indicating minimal reliance on debt financing [4] - Current ratio of approximately 3.17 reflects the ability to cover short-term liabilities with assets, ensuring good financial stability [4] - A cash dividend of $0.36 per share for both Class A and Class B common stock has been announced, payable on February 18, 2026 [4] Market Valuation - Price-to-earnings (P/E) ratio is approximately 23.64, and price-to-sales ratio is about 4.48 [5] - Enterprise value to sales ratio stands at around 3.99, while the enterprise value to operating cash flow ratio is approximately 11.39, indicating strong financial position [5]