NASDAQ$MORN

Morningstar Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Morningstar's Q4 2020 financial results demonstrated growth and resilience, with revenue increasing by 14.4% and net income significantly rising due to strategic acquisitions and strong performance in key product areas.

Morningstar reported a strong fourth quarter and full year for 2020, marked by revenue growth, strategic acquisitions like Sustainalytics, and increased profitability. The company's focus on ESG and expansion in data and analytics contributed to its success.

  • Revenue for the fourth quarter of 2020 increased 14.4% to $380.4 million.
  • Organic revenue grew by 7.9% compared with the prior-year period.
  • Net income in the fourth quarter of 2020 was $75.3 million, or $1.74 per diluted share.
  • Adjusted diluted net income per share increased 67.0% to $1.57, compared with $0.94 in the prior-year period.

Headline financials

Total Revenue

$380M

Previous: $332M+14.4%
EPS (adj)

$1.57

Previous: $0.94+67.0%
Assets Linked to Indexes

$179B

Previous: $44.70+400447427193.1%
Capital Expenditures

$22M

Previous: $22.9M-3.9%
Free Cash Flow

$308M

Previous: $59.6M+416.1%
Net Income

$75.3M

Previous: $27.6M+172.8%
Operating Income

$65.1M

Previous: $39.7M+64.0%
Gross Profit

$231M

Previous: $190M+21.3%
Cash & Equivalents

$464M

Previous: $368M+26.3%
Total Assets

$464M

Previous: $2.37B-80.4%
Stock-Based Comp

$9.1M

Previous: $11.1M-18.0%

Revenue & EPS history

Morningstar · Revenue · Quarterly

$380M

Q4 2020+14.4%vs Q4 2019
Beat estimate in 4 of 5 quarters(80%)
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

The company did not provide specific forward guidance in this earnings report.

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 Q4 2020

Historical avgQ4 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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