DLB - Dolby Labs trades lower as the Q4 profit outlook disappoints

Dolby Labs (NYSE:DLB) reports fiscal Q3 beats with revenue up 16% Y/Y to $286.8M and $0.71 EPS. Q3 cash flows from operations was $172.4 million, compared to $134.3 million in last year's quarter. "The volume of shipments, aggregated across various end markets and devices, continues to be impacted and difficult to predict because of economic uncertainty due to COVID-19. The global cinema market has been adversely impacted by COVID-19, and it remains uncertain when and where cinemas will resume operating at full capacity". For Q4, Dolby expects Non-GAAP EPS of $0.47-0.62 (consensus: $0.66) and revenue in the range of $280-310M (consensus: $304.83M); Gross margin percentages are anticipated to range from 88% to 89% on a GAAP basis and from 89% to 90% on a non-GAAP basis. DLB shares are down 3.1% premarket. Previously (July 29): Dolby Laboratories EPS beats by $0.23, beats on revenue

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Dolby Labs trades lower as the Q4 profit outlook disappoints