Investment research firm Morningstar (NASDAQ: MORN) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.
Morningstar beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $605.1 million, up 5.8% year on year. It was a strong quarter for the company, with and .
Is Morningstar a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Morningstar’s revenue to grow 5.9% year on year to $603.1 million, slowing from the 10.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Morningstar has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by 0.6% on average.
Looking at Morningstar’s peers in the financial exchanges & data segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Moody's delivered year-on-year revenue growth of 10.7%, beating analysts’ expectations by 2.4%, and Nasdaq reported revenues up 11.4%, topping estimates by 0.8%. Moody's traded down 1.2% following the results while Nasdaq was also down 1.7%.
Read our full analysis of Moody’s results here and Nasdaq’s results here.
Investors in the financial exchanges & data segment have had steady hands going into earnings, with share prices flat over the last month. Morningstar is down 6.7% during the same time and is heading into earnings with an average analyst price target of $293 (compared to the current share price of $218.34).
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