Dolby Laboratories continues to elicit strong institutional investor interest in the wake of stellar Q3 financial results that topped Wall Street expectations. The San-Francisco based company reported earnings of 73 cents a share surpassing analyst expectations for earnings of $65 cents a share.
Dolby Dagmar Holdings
Regulatory filings indicate that Dolby Dagmar family fund which is one of Dolby Laboratories largest shareholder currently owns 1.81 million Class A common stock. The institutional investor also owns 43.32 million shares of Class B Common stock, representing a 44.2% holding.
The filing also indicates that the fund sold 100,000 shares of Dolby Laboratories stock in a transaction that happened on August 14, 2017. The selloff which appears to be a normal profit taking play, occurred at an average price of $50.19 a share generating proceeds of $5 million.
Investor sentiment on Dolby Laboratories has increased to 1.46 compared to Q4 2016 and up by 0.33 from 1.33 in Q3 2016. 28 investors sold their stakes in the company in the recent quarter as 54 funds opened positions in the stock.
Stellar Q3 Earnings
The bullish tone around Dolby laboratory comes on the company reporting a 10.1% year over year increase in revenue that came in at $305.7 million, up from $297 million in Q3 2016. The company experienced a healthy increase in revenues across all its three major segments leading to a decent rise in the topline.
Dolby Laboratories reported a net income of $76 million in the quarter compared to $63.6 million reported in Q3 2016. The company expects revenues of between $230 million and $250 million for the fourth quarter, which should lead to a gross margin of between 87% and 88%.
“We had solid financial results this quarter. We also expanded our content ecosystem in Dolby Vision and Dolby Atmos, and grew our Dolby Cinema footprint by adding Les Cinémas Gaumont Pathé as a partner in Europe,” said Kevin Yeaman, President, and CEO.
The company has since announced a dividend offering of $0.14 a share on its Class A and Class B common stock. The dividend is to be paid on August 15, 2017, to shareholders on record as of August 27, 2017.
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