Dolby Laboratories Inc (NYSE:DLB) stock fell 6.92% (As on November 17, 11:35:44 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23 but gave weak guidance. Cash flows from operations were $367.1 million, compared to $318.6 million for the full year of fiscal 2022. The company held cash, cash equivalents, and investments of $982.3 million as of September 29, 2023.

DLB in the fourth quarter of FY 23 has reported the adjusted earnings per share of 65 cents, beating the analysts’ estimates for the adjusted earnings per share of 52 cents, according to Zacks Investment Research. The company had reported  the adjusted revenue of $290.6 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $286.4 million.

Additionally, the company announced a cash dividend of $0.30 per share of Class A and Class B common stock, payable on December 5, 2023, to stockholders of record as of the close of business on November 28, 2023.

For Q1/24, the company expects EPS to be in the range of $0.80-$0.95, compared to the consensus of $1.08, and revenues of $300-$330M, compared to the consensus of $353.67M. for its first quarter of fiscal 2024, Gross margins are anticipated to range from 89% to 90% and Operating expenses are anticipated to range from $180 million to $190 million on a non-GAAP basis.

For the full year, the company sees EPS at $3.60-$3.75, versus the consensus of $3.77, and revenues at $1.3 billion, versus the consensus of $1.36B. for the full year of fiscal 2024, gross margins are anticipated to be approximately 89% and Operating expenses are anticipated to range from $740 million to $750 million on a non-GAAP basis. Dolby expects operating margins to be approximately 20% and on a non-GAAP basis to be approximately 32%.

On the other hand, Apple debuted its latest iPhones powered by Dolby Vision and Dolby Atmos, including the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max. Yangwang announced its first car, the Yangwang U8 model, supporting Dolby Atmos. Polytron, the largest TV OEM in Indonesia, launched TVs that support Dolby Vision and Dolby Atmos. Hoichoi, an Indian Over-The-Top platform, adopted Dolby Atmos and Dolby Vision. Honor, a Chinese smart phone manufacturer, recently launched smart phones that support Dolby Vision playback. TCL’s 2024 TV lineup will support Dolby Atmos FlexConnect, a new solution that enables consumers to place wireless speakers, paired with a TV, anywhere in a room and automatically get an immersive Dolby Atmos experience.