NYSE$DLB

Dolby Laboratories Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Dolby's financial performance declined due to COVID-19 impacts, with revenue and net income decreasing compared to the previous year.

Dolby Laboratories reported Q4 2020 financial results with a decrease in revenue to $271.2 million compared to $298.8 million in Q4 2019. GAAP net income decreased to $26.8 million, or $0.26 per diluted share, compared to $43.9 million, or $0.43 per diluted share in Q4 2019. The results reflect the ongoing impact of the COVID-19 pandemic on various markets.

  • Q4 revenue decreased to $271.2 million from $298.8 million year-over-year.
  • GAAP net income for Q4 was $26.8 million, or $0.26 per diluted share, down from $43.9 million, or $0.43 per diluted share year-over-year.
  • Non-GAAP net income for Q4 was $45.8 million, or $0.45 per diluted share, compared to $67.6 million, or $0.66 per diluted share year-over-year.
  • Cash flows from operations for Q4 was $112.7 million, compared to $130.5 million year-over-year.

Headline financials

Total Revenue

$271M

Previous: $299M-9.2%
EPS (adj)

$0.45

Previous: $0.66-31.8%
Capital Expenditures

$10.4M

Previous: $16.6M-37.2%
Free Cash Flow

$102M

Previous: $114M-10.2%
Net Income

$26.8M

Previous: $43.9M-39.0%
Operating Income

$30.1M

Previous: $51.2M-41.3%
Gross Profit

$229M

Previous: $253M-9.5%
Cash & Equivalents

$1.07B

Previous: $797M+34.5%
Total Assets

$2.92B

Previous: $2.82B+3.4%
Stock-Based Comp

$21.8M

Previous: $17M+28.1%

Revenue & EPS history

Dolby · Revenue · Quarterly

$271M

Q4 2020-9.2%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Dolby · $291M total across 2 segments · Q4 2023

  • Licensing
    $265M
  • Products and services
    $25.4M

Forward guidance

Dolby anticipates ongoing impacts from COVID-19 on unit volume shipments and the global cinema market, leading to continued economic uncertainty and difficulty in predicting future results. The company has provided estimates for the first and second quarters of fiscal year 2021, but actual results could differ materially due to the challenging economic environment and the uncertain effects of COVID-19.

Headwinds

  • Unit volume shipments continue to be impacted and difficult to predict due to economic uncertainty caused by COVID-19.
  • The global cinema market has been adversely impacted by COVID-19 due to site closures or reduced utilization.
  • Cinema sites could continue to be negatively affected through the first half of fiscal 2021 or longer.
  • Estimates for future periods reflect certain assumptions about the potential impact of COVID-19, which may not materialize.
  • Actual results could differ materially from provided estimates due to the challenging economic environment and uncertain effects of COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.9%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-0.5%

Avg return

30 days after

43%

29 / 68 earnings

Positive

+14.9%

Q4 2024

Best reaction

-24.2%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-10.5%-9.6%-13.0%
Q1 2026+1.8%+2.3%+5.6%
Q4 2025-0.0%+2.8%+2.0%
Q2 2025-1.9%-3.6%-2.5%
Q1 2025+8.3%+4.6%+1.2%
Q4 2024+14.9%+12.9%+8.6%
Q3 2024-7.6%-9.3%-6.9%
Q2 2024+5.8%+6.9%+4.4%
Q1 2024-3.5%-4.5%-1.0%
Q4 2023-8.0%-4.1%-1.3%
Q3 2023-9.8%-11.7%-3.2%
Q2 2023+2.3%+1.6%+0.8%
Q1 2023+7.4%+5.5%+3.8%
Q4 2022-1.5%-0.8%+1.0%
Q3 2022+0.9%+3.0%-5.7%
Q2 2022-9.0%-8.0%-0.9%
Q1 2022-13.8%-13.0%-17.7%
Q4 2021-1.0%+1.2%+4.0%
Q3 2021+1.6%+4.4%+4.7%
Q2 2021-6.2%-6.5%-7.7%
Q1 2021+1.7%+5.3%+12.7%
Q4 2020+3.8%+6.3%+8.4%
Q3 2020+1.9%+0.8%+2.0%
Q2 2020-5.1%-0.1%+8.7%
Q1 2020-0.5%+1.0%-5.3%
Q4 2019+5.6%+6.3%+3.2%
Q3 2019-13.6%-14.1%-9.6%
Q2 2019+0.8%+0.9%-4.2%
Q1 2019+3.1%+3.5%+3.7%
Q4 2018-3.0%-3.6%+0.4%
Q3 2018+5.3%-0.7%+11.7%
Q2 2018-7.6%-10.1%-8.5%
Q1 2018+8.5%+2.1%-3.7%
Q4 2017-5.3%-5.1%+4.1%
Q3 2017+2.4%-1.5%-8.0%
Q2 2017-0.1%-3.6%-3.9%
Q1 2017-1.6%-2.9%-0.7%
Q4 2016-3.4%-4.9%-5.9%
Q3 2016-1.0%-1.3%-1.1%
Q2 2016+12.3%
Q1 2016+10.7%
Q4 2015+2.8%
Q3 2015-5.7%
Q2 2015+9.5%
Q1 2015-7.9%
Q4 2014+0.7%
Q3 2014+2.0%
Q2 2014-8.7%
Q1 2014+1.5%
Q4 2013+2.1%
Q3 2013-1.3%
Q2 2013+4.6%
Q1 2013+1.3%
Q4 2012-3.5%
Q3 2012-14.9%
Q2 2012+14.3%
Q1 2012+6.4%
Q2 2011-2.2%
Q4 2011-2.2%
Q3 2011-24.2%
Q1 2011-2.2%
Q1 2010-2.2%
Q2 2010-1.0%
Q4 2008-1.0%
Q4 2010-1.0%
Q4 2009-4.5%
Q3 2010-4.5%
Q3 2009-4.5%

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