Audio and video technology company Dolby Laboratories (NYSE: DLB) will be reporting earnings this Thursday afternoon. Here’s what to expect.

Dolby Laboratories beat analysts’ revenue expectations last quarter, reporting revenues of $346.7 million, down 2.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

Is Dolby Laboratories a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Dolby Laboratories’s revenue to grow 4.2% year on year, improving from the 1.4% increase it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dolby Laboratories has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Dolby Laboratories’s peers in the vertical software segment, only Cadence Design Systems has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 18.7%. The stock was down 3.5% on the results.

There has been positive sentiment among investors in the vertical software segment, with share prices up 7% on average over the last month. Dolby Laboratories is up 8.1% during the same time and is heading into earnings with an average analyst price target of $81 (compared to the current share price of $62.99).

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