|CFRA MAINTAINS HOLD OPINION ON SHARES OF DOLBY LABORATORIES, INC.|
3:03 pm ET July 30, 2021
Our 12-month target of $100 (up by $4), 25.6x our FY 22 (Sep.) EPS estimate, is aligned with the DLB's five-year historical trading band. We increase our FY 21 EPS estimate to $3.62 from $3.45 and FY 22's EPS to $3.91 from $3.84. DLB prints Jun-Q adj-EPS of $0.71 vs. $0.86, compared to consensus of $0.48, as sales growth and expense controls led to operating margin upside (26% vs. 24% expected). Revenues were $287M (up 16.7% Y/Y), topping consensus by $8M, as a shipment true-up of $14M drove the beat in its entirety. Total licensing revenue rose nicely by 15.5%, as higher recoveries in broadcast more than offset declines in mobile. DLB maintained its assumptions that PC markets likely remain the key growth driver for the remainder of FY 21, which led to the company to modestly raise the low-end of its second half revenue target to $570M (from $560M). The quarter was sound, with no glaring outliers, but a lack of near-term catalysts likely keeps shares in a tight trading range in the interim, in our opinion.