Morningstar Q3 revenue rises as Morningstar Credit, Morningstar Direct Platform segments grow 

Overview

• Investment research firm's Q3 revenue rose 8.9% yr/yr; adjusted EPS up 36.5%

• Q3 operating income climbed 31.0%, with operating margin up to 24.9%

• Company repurchased $100 mln of shares in the quarter

Outlook

• Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

• PRODUCT ENHANCEMENTS - Co said new product features and enhancements, including launch of Direct AI, contributed to growth

• SEGMENT CONTRIBUTIONS - Morningstar Credit and Morningstar Direct Platform were largest contributors to organic revenue growth

• STRONG ADOPTION - Co reported strong client adoption of MCP offerings, with PitchBook Data Premium Connector tool calls rising sharply

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the professional information services peer group is "buy"

• Wall Street's median 12-month price target for Morningstar, Inc. is $237.00, about 9.8% above its October 27 closing price of $215.78

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)