Earnings Preview For Morningstar

Morningstar MORN is preparing to release its quarterly earnings on Wednesday, 2025-04-30. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Morningstar to report an earnings per share (EPS) of $2.06.

Investors in Morningstar are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

Last quarter the company beat EPS by $0.08, which was followed by a 2.75% drop in the share price the next day.

Here's a look at Morningstar's past performance and the resulting price change:

Stock Performance

Shares of Morningstar were trading at $278.74 as of April 28. Over the last 52-week period, shares are down 2.34%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Insights Shared by Analysts on Morningstar

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Morningstar.

With 1 analyst ratings, Morningstar has a consensus rating of Outperform. The average one-year price target is $370.0, indicating a potential 32.74% upside.

Analyzing Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of MarketAxess Holdings, FactSet Research Systems and Donnelley Financial Solns, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for MarketAxess Holdings, with an average 1-year price target of $237.0, suggesting a potential 14.97% downside.
• Analysts currently favor an Neutral trajectory for FactSet Research Systems, with an average 1-year price target of $455.86, suggesting a potential 63.54% upside.
• Analysts currently favor an Buy trajectory for Donnelley Financial Solns, with an average 1-year price target of $70.4, suggesting a potential 74.74% downside.

Overview of Peer Analysis

The peer analysis summary presents essential metrics for MarketAxess Holdings, FactSet Research Systems and Donnelley Financial Solns, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Morningstar outperforms peers in revenue growth, ranking at the top with 9.71%. In terms of gross profit, Morningstar leads with $358.80M. Additionally, Morningstar has the highest return on equity at 7.34%.

Delving into Morningstar's Background

Morningstar Inc is a provider of independent investment research to financial advisers, asset managers, and investors. The company focuses its operations on two core sectors: data and research. It offers data on investments such as mutual funds, stocks, exchange-traded funds, closed-end funds, separate accounts, and variable annuities. Further, the company tracks real-time market data of equity, derivative, currency exchanges, and other investments. In its research operation, Morningstar offers analyst research on passive and active mutual funds, alternative funds, and college saving plans. Morningstar's majority of the revenue is generated in the United States of America.

Morningstar: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Morningstar's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 9.71%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Morningstar's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 19.78%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Morningstar's ROE excels beyond industry benchmarks, reaching 7.34%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.29%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.56, Morningstar adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Morningstar visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.