Research analysts at Barrington Research have revised their earnings per share (EPS) estimates for Dolby Laboratories (NYSE: DLB) for the first quarter of 2026. In a report released on November 19, 2023, analyst P. Sholl downgraded the forecast from $0.68 to $0.63 per share. Despite the adjustment, Barrington Research maintains an “Outperform” rating on the stock with a price target of $95.00.
For the full fiscal year 2026, Barrington Research anticipates Dolby will post earnings of $3.14 per share. The firm has also provided estimates for subsequent quarters, projecting earnings of $1.04 for Q2 2026, $0.70 for Q3 2026, and $0.76 for Q4 2026. Currently, the consensus estimate for Dolby’s full-year earnings is $2.94 per share.
In its latest earnings announcement on November 18, 2023, Dolby Laboratories reported earnings of $0.99 per share, exceeding analysts’ expectations of $0.70 by $0.29. The company recorded a revenue of $307.02 million, slightly above the consensus estimate of $305.76 million. This represents a year-over-year revenue increase of 0.7%, compared to $0.61 per share in the same quarter last year. Dolby also provided guidance for fiscal year 2026, projecting EPS between $4.190 and $4.340, and a Q1 2026 EPS guidance of $0.790 to $0.940.
Analyst Ratings and Stock Performance
Several other analysts have also weighed in on Dolby’s stock. Rosenblatt Securities lowered its price target from $95.00 to $85.00, maintaining a “buy” rating. Weiss Ratings reissued a “hold (C-)” rating on November 13. Robert W. Baird initiated coverage with a “neutral” rating and a price target of $74.00 in September. Conversely, Tigress Financial increased its target from $112.00 to $114.00, also giving a “buy” rating. Overall, three analysts have rated Dolby as a Buy, while three have assigned a Hold rating, leading to an average rating of “Moderate Buy” with a target price of $92.00, according to MarketBeat.
As of the latest trading session, shares of Dolby opened at $67.52. The company has a market capitalization of $6.47 billion, a price-to-earnings (P/E) ratio of 24.73, and a beta of 0.97. Over the past year, the stock reached a low of $64.02 and a high of $89.66. Its fifty-day moving average stands at $68.59, while the two-hundred-day moving average is at $72.35.
Dividend Announcement and Insider Activity
In addition to the earnings report, Dolby Laboratories announced a quarterly dividend of $0.36 per share, set to be paid on December 10, 2023. The dividend is applicable to shareholders on record as of December 2, 2023, representing an annualized yield of 2.1%. This is an increase from the previous quarterly dividend of $0.33. The company’s payout ratio currently stands at 54.75%.
In related news, CEO Kevin J. Yeaman sold 25,000 shares of Dolby stock on October 14 at an average price of $68.87, totaling $1,721,750.00. Following the sale, Yeaman retains ownership of 114,725 shares, valued at approximately $7,901,110.75. This transaction represents a 17.89% decrease in his holdings. The sale was disclosed in a filing with the Securities and Exchange Commission.
Institutional investors hold a significant portion of Dolby’s shares, currently owning 58.56% of the company. Recent activity indicates new stakes acquired by several large investors, including First Horizon Corp and Hantz Financial Services Inc., who increased their stakes by 166.7% in the third quarter.
Dolby Laboratories specializes in audio and imaging technologies, enhancing entertainment across various platforms, including cinema, television, mobile devices, and automotive applications. The company’s innovations include audio codecs like AAC and HE-AAC, as well as Dolby Atmos technology, which provides immersive sound experiences in media.
