Dolby Laboratories' stock experienced a significant after-hours plunge of 6.69% following the release of its second-quarter financial results.

The decline appears to be driven by the company's third-quarter revenue outlook, which fell short of analyst expectations. Dolby provided Q3 revenue guidance of $295 million to $325 million, significantly below the Ibes estimate of $343.5 million.

While the company reported Q2 revenue of $396 million, beating the estimate of $385.8 million, investors focused on the weaker forward-looking guidance, leading to the post-market selloff.