Dolby Profit Tops Street; Q4 Guidance Weak, Cuts Top End Of FY15 Revenue Outlook

(RTTNews) - Dolby Laboratories Inc (DLB), the provider of audio, video and voice technologies, on Wednesday reported third-quarter net earnings of $35.5 million or $0.34 per share compared with $39.8 million or $0.38 per share last year.

Analysts polled by Thomson Reuters estimated earnings of $0.30 per share for the quarter.

Excluding items, the company reported adjusted earnings of $0.49 per share compared with $0.52 per share a year ago.

Revenues for the quarter were up at $231.7 million compared with $223.4 million in the prior year. Analysts estimated revenues of $235.3 million.

"Despite signs of near-term weakness in consumer markets, our core business remains strong and our growth initiatives continue to advance," said CEO Kevin Yeaman. "The first five Dolby Cinema locations in the US opened this quarter and have been met with spectacular audience and industry reactions."

For the fourth quarter, the company expects net earnings of $0.27 to $0.33 per share, adjusted earnings of $0.43 to $0.49 per share and revenues of $230 million to $240 million. Analysts expect earnings of $0.34 per share on revenues of $244.9 million.

For the full year 2015, the company now expects revenues of $970 million to $980 million, from prior guidance of $970 million to $1 billion. Analysts expect revenues of $986.3 million.