Dolby Laboratories (DLB) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - The market anticipates Dolby Laboratories (DLB) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended September 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Dolby is $0.68 per share, reflecting a year-over-year increase of 4.6%, while revenues are projected to be $305.82 million, up 5.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Dolby is lower than the consensus estimate, resulting in an Earnings ESP of -1.47%, indicating a bearish outlook from analysts [10][11]. Historical Performance - In the last reported quarter, Dolby exceeded the expected earnings of $0.59 per share by delivering $0.71, achieving a surprise of 20.34%. The company has beaten consensus EPS estimates in the last four quarters [12][13]. Investment Considerations - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 4 suggests that predicting a positive outcome for Dolby is challenging [11][16].