Dolby and LG Launch the First Flexible Atmos Home Audio System
Introduction of LG Sound Suite: Dolby Laboratories and LG Electronics have launched the LG Sound Suite, featuring the H7 soundbar, which utilizes Dolby Atmos FlexConnect technology to enhance home audio experiences and allow for customizable setups.
FlexConnect Technology: The FlexConnect system enables users to wirelessly connect speakers to their TVs, supporting up to 27 speaker configurations, and will be integrated into LG's premium TV lineup through a software update.
Growing Adoption of Dolby Atmos: Dolby Atmos is rapidly gaining traction, being featured in 98 of the top 100 box-office films and supported by numerous streaming services, indicating its status as a standard for premium content.
Future Prospects and Financial Outlook: Dolby anticipates significant growth in the automotive sector and projects revenues between $1.39-$1.44 billion for fiscal 2026, despite a recent decline in share value compared to the broader industry.
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Dolby Laboratories to Announce Q1 Earnings on January 29
- Earnings Announcement Date: Dolby Laboratories is set to release its Q1 2023 earnings report on January 29 after market close, with consensus estimates predicting an EPS of $0.99, reflecting a 13.2% year-over-year decline, and revenue expectations of $341.45 million, down 4.4% year-over-year.
- Historical Performance Review: Over the past two years, Dolby has consistently beaten EPS estimates 100% of the time and revenue estimates 75% of the time, indicating strong financial performance and market confidence.
- Expectation Revisions: In the last three months, there have been no upward revisions to EPS estimates, with two downward adjustments, while revenue estimates also saw no upward revisions and four downward adjustments, suggesting a cautious market outlook on the company's future performance.
- Growth Targets: Dolby aims for an annual growth rate of 15%-20% in its Atmos, Vision, and Imaging patents, as consumption-based revenue models expand, reflecting the company's positive outlook on future market opportunities.

Dolby Laboratories Exceeds Q1 Earnings Expectations
- Earnings Beat: Dolby Laboratories reported Q1 revenue of $347 million and non-GAAP EPS of $1.06, both exceeding the high end of prior guidance, primarily due to earlier deal timing and a $7 million shipment true-up, reflecting strong market performance.
- Cash Flow and Buybacks: The company generated approximately $55 million in operating cash flow, repurchased $70 million in stock, and declared a $0.36 dividend, up 9% year-over-year, indicating a proactive approach to capital management and shareholder returns.
- Growth Potential: Dolby raised its fiscal 2026 revenue guidance to $1.4 to $1.45 billion and non-GAAP EPS to $4.30 to $4.45, implying a 50 to 100 basis point improvement in operating margins, showcasing strong growth potential in automotive and television markets.
- Tech Partnerships and Innovation: Dolby's partnership with Qualcomm integrates its Atmos and Vision technologies into Qualcomm's automotive platform, expanding collaborations with over 35 OEMs, which is expected to enhance its market share in automotive entertainment and streaming.








