Overview

* Morningstar Q3 revenue grows 8.4%, beating analyst expectations

* Adjusted EPS for Q3 increases 27.5%, beating consensus

* Company completes $500 mln share repurchase, announces new $1 bln buyback

Outlook

* Company did not provide specific guidance for future quarters in press release

Result Drivers

* MORNINGSTAR CREDIT - Strong performance in asset classes and regions drove significant revenue growth

* DIRECT PLATFORM & PITCHBOOK - Both platforms contributed meaningfully to consolidated growth

* COMPENSATION COSTS - Higher compensation costs driven by strong performance relative to targets

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $617.40 $603.30

Revenue mln mln (2

Analysts

)

Q3 Beat $2.55 $2.42 (2

Adjusted Analysts

EPS )

Q3 EPS $2.17

Q3 Net $91.60

Income mln

Q3 $127.80

Operatin mln

g Income

Q3 20.70%

Operatin

g Margin

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 ( MORN ) is $325.00, about 32.9% above its October 28 closing price of $218.12

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release:

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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.)