Dolby Laboratories, Inc. (NYSE:DLB) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 3.3% to hit US$357m. Dolby Laboratories also reported a statutory profit of US$0.70, which was an impressive 21% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Dolby Laboratories

Taking into account the latest results, the most recent consensus for Dolby Laboratories from three analysts is for revenues of US$1.36b in 2025. If met, it would imply a reasonable 3.0% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 18% to US$3.23. In the lead-up to this report, the analysts had been modelling revenues of US$1.36b and earnings per share (EPS) of US$2.51 in 2025. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of US$100.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Dolby Laboratories' rate of growth is expected to accelerate meaningfully, with the forecast 4.1% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Dolby Laboratories is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dolby Laboratories following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dolby Laboratories' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Dolby Laboratories analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Dolby Laboratories (1 is concerning!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.