Dolby Laboratories (DLB) Reports 4Q EPS Miss; B. Riley Cuts Price target to $41

B. Riley maintained a Neutral rating on Dolby Laboratories (NYSE: DLB), and cut the price target to $41.00 (from $42.50), following the company's 4Q15 earnings results. Revenues of $229.5MM missed consensus of $235.8MM, and the low-end of the $230-240MM guidance. EPS came in at $0.27 compared to consensus' $0.31.

Analyst Eric Wold commented, "Dolby Laboratories reported a Q4 revenue/EPS miss and a lower-than-expected FY16 guide as the company remains at a point where operating expenses remain elevated as new license streams have yet to reach meaningful levels. Nevertheless, we come out of the report increasingly optimistic that operating expense growth is moderating and the spending on new Dolby Voice partner integrations along with accelerated Dolby Cinema rollouts with AMC Entertainment (AMC; Buy; $37.00 PT) are an indication of stronger revenue/margin contributions to come in FY17. That being said, even with 20%+ upside to our new $41.00 price target (down from $42.50), we remain comfortable waiting for stronger timing visibility as the rollouts continue during FY16 and believe patience will be rewarded. We are maintaining our Neutral rating."

For an analyst ratings summary and ratings history on Dolby Laboratories click here. For more ratings news on Dolby Laboratories click here.

Shares of Dolby Laboratories closed at $34.00 yesterday.

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