NASDAQ$MORN

Morningstar Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Morningstar's financial performance increased in Q3 2020, driven by revenue growth and strategic acquisitions.

Morningstar, Inc. reported a 13.8% increase in revenue to $357.2 million for the third quarter of 2020. The company's net income was $76.2 million, or $1.76 per diluted share, which included a $1.18 per share holding gain related to Morningstar's previously held equity interest in Sustainalytics. Adjusted operating income increased by 42.3% to $91.2 million, and adjusted diluted net income per share increased by 46.2% to $1.55.

  • Revenue increased by 13.8% to $357.2 million, with organic revenue growth of 8.0%.
  • License-based revenue grew by 18.7%, driven by PitchBook, Morningstar Data, and Morningstar Direct.
  • Net income was $76.2 million, or $1.76 per diluted share, including a gain from Sustainalytics.
  • Adjusted operating income increased by 42.3% to $91.2 million, with an adjusted operating margin of 25.6%.

Headline financials

Total Revenue

$357M

Previous: $314M+13.8%
EPS (adj)

$1.55

Previous: $1.39+11.5%
Assets Under Management

$215B

Previous: $0.00
Capital Expenditures

-$54.7M

Previous: -$57.1M+4.2%
Free Cash Flow

$21.5M

Previous: -$8M+368.8%
Net Income

$76.2M

Previous: $49.1M+55.2%
Operating Income

$44.3M

Previous: $49.6M-10.7%
Gross Profit

$219M

Previous: $185M+17.9%
Cash & Equivalents

$378M

Previous: $322M+17.4%
Total Assets

$2.56B

Previous: $2.28B+12.3%
Stock-Based Comp

$9.9M

Previous: $10.8M-8.3%

Revenue & EPS history

Morningstar · Revenue · Quarterly

$357M

Q3 2020+13.8%vs Q3 2019
Beat estimate in 5 of 6 quarters(83%)
ActualEstimate

Revenue by segment

Morningstar · $409M total across 4 segments · Q2 2023

  • Morningstar Data & Analytics
    $194M
  • PitchBook
    $134M
  • Morningstar Wealth
    $50M
  • Morningstar Retirement
    $31.4M

Forward guidance

This press release contains forward-looking statements as that term is used in the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations about future events or future financial performance, including the impacts of the current COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.5%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.4%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+12.6%

Q3 2018

Best reaction

-12.9%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-10.0%-11.2%-3.0%
Q4 2025+2.3%+5.7%+19.0%
Q3 2025+2.8%+1.4%+2.9%
Q1 2025-0.5%+3.1%+8.3%
Q4 2024-2.8%-6.5%-7.5%
Q3 2024-3.5%-2.7%+0.8%
Q2 2024+4.5%+4.7%+1.6%
Q1 2024-4.3%-5.5%-0.9%
Q4 2023-0.2%+8.1%+9.8%
Q3 2023+11.1%+12.6%+23.7%
Q2 2023+6.5%+6.5%+2.7%
Q1 2023-12.9%-7.9%+1.7%
Q4 2022-11.1%-11.0%-19.6%
Q3 2022+2.1%+4.7%+11.2%
Q2 2022+3.5%-0.0%-5.8%
Q1 2022+1.4%-4.4%-0.6%
Q4 2021+6.4%+2.0%+1.3%
Q3 2021+4.8%+3.1%+1.4%
Q2 2021+3.0%+5.6%+7.0%
Q1 2021+3.7%+3.5%-7.7%
Q4 2020-1.2%-8.9%-5.6%
Q3 2020+6.9%+6.5%+8.8%
Q2 2020+4.9%+2.8%+0.1%
Q1 2020+9.0%+3.8%+7.1%
Q4 2019-2.5%-6.4%-35.4%
Q3 2019-7.2%-4.7%-1.1%
Q2 2019+0.6%-1.0%-0.8%
Q1 2019-0.9%+2.9%-2.7%
Q4 2018+0.3%+0.6%-3.9%
Q3 2018+12.6%+4.3%-0.8%
Q2 2018-2.7%-4.1%-0.9%
Q1 2018+6.2%+5.0%+13.8%
Q4 2017-1.1%-1.7%-1.3%
Q3 2017+1.9%-2.3%+6.3%
Q2 2017+2.9%+3.4%+1.6%
Q1 2017-4.1%-6.1%-6.8%
Q4 2016+1.8%+2.2%-2.0%
Q3 2016-6.4%-7.2%-4.8%
Q2 2016+1.0%+0.7%-1.8%
Q1 2016-4.2%
Q4 2015-0.5%
Q3 2015-1.9%
Q2 2015+3.2%
Q1 2015+3.5%
Q4 2014+10.7%
Q3 2014-0.3%
Q2 2014-2.4%
Q1 2014-4.6%
Q4 2013+4.3%
Q3 2013+4.9%
Q2 2013+0.7%
Q1 2013+0.5%
Q4 2012+1.9%
Q3 2012-1.3%
Q2 2012+2.4%
Q1 2012+1.7%
Q4 2011-0.1%
Q3 2011-0.4%
Q2 2011-2.5%
Q1 2010-1.7%
Q1 2011+1.5%
Q4 2010-2.2%
Q4 2008-2.2%
Q3 2009+0.1%
Q3 2010+0.1%
Q2 2010-1.1%
Q4 2009-1.1%
Q2 2009-1.1%

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