| From: Cooters | 2/1/2021 12:56:59 PM | | | | | | CFRA MAINTAINS HOLD OPINION ON SHARES OF DOLBY LABORATORIES, INC.
6:06 pm ET January 29, 2021
We keep our 12-month price target of $84, 25x our FY 21 (Sep.) EPS estimate, and squarely in line with the DLB's five-year historical trading band. We keep our FY 21 EPS estimate of $3.36 and lift FY 22's EPS by $0.15 to $3.73. DLB prints Dec-Q adj-EPS of $1.48 vs. $0.64, easily surpassing consensus by $0.44 on upside in sales and cost controls. Quarterly revenues rose 33.6% to $390M, beating consensus by $44.5M. Primary drivers to the top-line beat were a $20M true-up and a $15M-$20M pull-forward in licensing recoveries from mobile customers. DLB also revised its Jan-Q sequential outlook above consensus expectations for revenues ($280M to $310M vs. $290M) and adj-EPS ($0.57 to $0.72 vs. $0.62), aided by higher shipment volumes for select devices (TVs and PCs). For the stock to move materially higher from here, we think an expedited timeline around a recovery in Dolby Cinemas and higher adoption of other technologies (Atmos and Vision) would need to emerge in the second half of FY 2021. |
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| To: Cooters who wrote (253) | 2/1/2021 12:59:37 PM | | From: Cooters | | | | For the stock to move materially higher from here, we think an expedited timeline around a recovery in Dolby Cinemas and higher adoption of other technologies (Atmos and Vision) would need to emerge in the second half of FY 2021.
Couldn't agree more, and since I expect those things to happen, I expect it to go materially higher when they do. Coot |
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| To: Cooters who wrote (254) | 2/1/2021 2:33:52 PM | | From: A.J. Mullen | | | | Cinemas are mostly closed. A fear is that when they reopen, people's habits will have adjusted, they might feel content to watch at home. A hope is that Cinemas would entice them back with a better experience.
I imagine installation takes a theater out of commission and is time-consuming. Now would be a good time to do it if the money is available, a big if. Was there any mention in the conference call of chains investing at this time? |
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| To: Cooters who wrote (256) | 2/1/2021 3:47:15 PM | | From: A.J. Mullen | | | | Thanks. I believe theaters in Taiwan and China are open for the most part. It would be good to hear of new installations in Europe and the US. I couldn't find a breakdown of earnings by region.
Ashley |
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| From: Cooters | 3/4/2021 5:33:00 PM | | | | | | Really good Q&A format presentation at MS this afternoon. Lewis did a great job explaining some of the new products, particularly dolby.io. Only 30 minutes, highly suggest listening. Notes up tomorrow, time for a drink.
Cooters |
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| To: Cooters who wrote (259) | 3/10/2021 12:09:30 PM | | From: Cooters | | | | Dolby at MS - 3/4/21
Q&A format with Lewis Chew, CFO
- interesting tidbit, Lewis has not been physically in the office since 3/6/20.
- Data from their recent reporting period in China, which included the Lunar NY(2/12). showed strong cinema activity.
- Dolby believes the premium theater experience will not only survive but thrive. They think the mall cineplex area may not fare so well.
- discussed the adoption of Dolby tech in the content creation market for music, said 3 years ago they had literally zero business in this area.
- Lenovo introduced a PC with Dolby Voice. they think Voice will have a strong, long lived ramp. I've seen many articles highlighting the need for better audio and video on PC's as it relates to remote work and conferencing.
- Nice description of dolby.io developer's platform. After a trial period, customers start paying for using the API's.
- Dolby Cinema was the first time they started receiving a share of each movie ticket.
- At some point they will begin sharing dolby.io metrics like downloads and customers, it will likely be before they start sharing revenue info.
- The analyst community currently forecasts 10-11% revenue growth in 2022, a return to double digits. They asked Lewis if that were to come to fruition, what things would likely drive it. He cited TV's, gaming, some early automotive revenue, and a cinema recovery. Thought dolby.io was a wild card that could really take off. And also mobile.
Cooters |
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