Dolby Laboratories (DLB) stock surged over 11% in after-hours trading on Tuesday, following the company's impressive fiscal fourth-quarter 2024 earnings report and an optimistic outlook for fiscal 2025.

For the fourth quarter, Dolby reported total revenue of $305 million, up from $291 million a year ago, and net income of $59 million or $0.61 per diluted share. These results exceeded analysts' expectations, driving investor enthusiasm.

Perhaps more significantly, Dolby provided an upbeat forecast for fiscal 2025. The company expects total revenue to range between $1.33 billion and $1.39 billion, representing growth of around 5% at the midpoint. Dolby also projected non-GAAP earnings per share of $3.99 to $4.14 for the year, well above analysts' consensus estimates.

In the earnings release, Dolby CEO Kevin Yeaman expressed confidence in the company's momentum, highlighting strong traction for its Dolby Atmos and Dolby Vision technologies. He also cited the acquisition of GE Licensing as strengthening Dolby's imaging patent portfolio and the potential of Dolby.io to offer real-time interactive experiences.

"As we enter fiscal 2025, we have strong momentum with Dolby Atmos and Dolby Vision, our imaging patent portfolio has gotten stronger with the GE Licensing acquisition, and we are excited about our opportunity with Dolby.io," Yeaman stated.