Here's What Key Metrics Tell Us About Dolby Laboratories (DLB) Q2 Earnings

Core Insights - Dolby Laboratories reported revenue of $369.56 million for the quarter ended March 2025, marking a year-over-year increase of 1.4% and an EPS of $1.34 compared to $1.27 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $378.68 million, resulting in a surprise of -2.41%, while the EPS exceeded the consensus estimate of $1.29 by 3.88% [1] Revenue Breakdown - Revenue from Products and Services was $23.56 million, which is below the average estimate of $28.20 million, reflecting a year-over-year decline of 10.4% [4] - Licensing revenue was reported at $346.01 million, slightly below the estimated $350.48 million, but showed a year-over-year increase of 2.3% [4] Gross Margin Analysis - Gross Margin for Licensing was $326.32 million, compared to the average estimate of $331.80 million [4] - Gross Margin for Products and Services was $7.40 million, exceeding the average estimate of $6.77 million [4] Stock Performance - Shares of Dolby Laboratories have decreased by 5.4% over the past month, while the Zacks S&P 500 composite has seen a decline of 0.7% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]