Dolby Laboratories (DLB) stock surged 11.51% in pre-market trading on Wednesday, following the company's release of strong fiscal fourth-quarter 2024 results and an optimistic outlook for the coming year.
The audio technology company reported a 5% year-over-year increase in revenue to $305 million, driven by robust growth in its flagship Dolby Atmos and Dolby Vision technologies, which saw revenue rise approximately 14% for the full fiscal year. Non-GAAP earnings per share jumped 25% to $0.81, benefiting from higher gross margins and a lower tax rate. Additionally, Dolby raised its quarterly dividend by 10% to $0.33 per share, reflecting confidence in its financial position.
However, the company faced some headwinds, including underwhelming global consumer electronics sales and a soft performance in its cinema business due to last year's industry strikes. Foundational audio technologies revenue also declined by around 10%, presenting a challenge for the company. Broadcast revenue was weaker than expected, down 9% due to lower set-top box shipments and recoveries.
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