revenue
960–1000 $million
FY 2023
official guidance
DOLBY LABORATORIES, INC.
Last · NYSE$58.84+0.48 (+0.82%)close · yahoo · 15h ago
Market cap$5.51B59.4M sh
P/E · TTM25.0fwd 12.8 · eps 2.35
Beta0.78vs S&P 500
Div yield2.47%annual · TTM
52w range
$48.26$69.95
Volume617.0Ksession
| Revenue | $1.4B |
|---|---|
| Operating income | $209.4M |
| Net income | $176.8M |
| Free cash flow | $286.1M |
| Operating margin | 15.5% |
| Net margin | 13.1% |
| Return on equity | 6.8% |
| Period | TTM 2026-06-26 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Promising Animal Health execution, but balance-sheet and cash-conversion risks argue for waiting.
Hold: Phibro delivered solid operating momentum, with Q2 sales up 5% to $244.6 million, Animal Health sales up 9% and adjusted EBITDA up 6% to roughly $33 million, but adjusted EPS still fell 9%.
FY2023 guidance remains $960 million-$1.0 billion of sales and $113 million-$118 million of adjusted EBITDA, yet the investment case is tempered by negative trailing-12-month free cash flow of $45 million, 4.2x gross leverage, weaker Mineral Nutrition, and an unusually back-end-loaded outlook.
Themes
- Animal Health
- Mineral Nutrition
- Companion Animals
- Latin America Growth
- Environmental Liability
- Inventory Build
Near term
The second-half delivery implied by unchanged FY2023 guidance is the key near-term test; strategic investment spending is expected to increase slightly in the second half.
Animal Health momentum, particularly Latin America MFAs, nutritional specialties and Rejensa, should support growth, while Mineral Nutrition remains exposed to lower cattle placements, feedlot weakness and commodity-linked pricing.
The $6.6 million pretax environmental remediation and litigation-related charge lowers FY2023 GAAP net income guidance to $34 million-$38 million and GAAP diluted EPS to $0.84-$0.94, even though adjusted guidance was maintained.
Inventory normalization could improve cash flow, but management first needs to rebuild supply-chain confidence after adding approximately one month of inventory.
Longer term
Animal Health is the strongest structural asset: non-antibiotic nutritional specialties and vaccines are gaining relevance, and the company is investing in companion-animal, vaccine and nutritional-specialty development.
Latin America has benefited from sustained investment and is expected to continue growing, providing geographic support beyond the more challenged U.S. feedlot market.
The companion-animal opportunity is still developmental rather than proven; the additional board expertise from Alejandro Bernal may help strategy, but management explicitly said it sees potential conflicts more clearly than immediate synergies.
Mineral Nutrition may face a more pronounced livestock-cycle headwind in calendar 2023 as fewer cattle follow the drought-driven movement into feedlots.
Red flags
Trailing-12-month operating cash flow was negative $5 million and free cash flow was negative $45 million, primarily because inventory increased by $58 million; this is material for a company carrying $477 million of gross debt.
At 4.2x gross leverage, Phibro has limited room for execution setbacks, although $300 million of debt is protected by a fixed-rate swap and quarter-end liquidity was $202 million.
Management offered limited quantification or operational detail for why Animal Health is outperforming peers, responding primarily that it reflects 'great management'; competitive durability therefore remains insufficiently demonstrated.
The outlook depends on a stronger second half while absorbing higher SG&A and approximately $10 million of additional strategic investment, creating execution risk if demand or margins soften.
The environmental settlement is described as tentative and contribution-protected, but additional remediation obligations and exceptions remain unresolved risks.
Forward outlook
ebitda
113–118 $million
FY 2023
official guidance
eps diluted
0.84–0.94 $per share
FY 2023
official guidance
adjusted eps
1.21–1.31 $per share
FY 2023
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$1.20
Est. revenue
372.8M
Earnings transcripts
- Motley Fool
Dolby (DLB) Q3 2026 Earnings Call Transcript
DOLBY LABORATORIES, INC.
- Issuer webcast
Q3 2026 earnings call transcript
DOLBY LABORATORIES, INC.
- Issuer webcast
Q3 2026 webcast
DOLBY LABORATORIES, INC.
- Issuer IR
Q2 2025 earnings call transcript
DOLBY LABORATORIES, INC.
- Issuer webcast
Q2 2025 earnings call transcript
DOLBY LABORATORIES, INC.
- Issuer IR
Q2 2025 earnings call transcript
DOLBY LABORATORIES, INC.
Documents
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