Dolby Laboratories (DLB) reported $369.56 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 1.4%. EPS of $1.34 for the same period compares to $1.27 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $378.68 million, representing a surprise of -2.41%. The company delivered an EPS surprise of +3.88%, with the consensus EPS estimate being $1.29.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Dolby Laboratories performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenue- Products and services: $23.56 million compared to the $28.20 million average estimate based on three analysts. The reported number represents a change of -10.4% year over year.
• Revenue- Licensing: $346.01 million versus $350.48 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.3% change.
• Gross Margin- Licensing: $326.32 million versus $331.80 million estimated by three analysts on average.
• Gross margin- Products and services: $7.40 million compared to the $6.77 million average estimate based on three analysts.

View all Key Company Metrics for Dolby Laboratories here>>>

Shares of Dolby Laboratories have returned -5.4% over the past month versus the Zacks S&P 500 composite's -0.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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