Investment research firm Morningstar (NASDAQ: MORN) will be reporting results this Wednesday after market hours. Here’s what investors should know.
Morningstar beat analysts’ revenue expectations last quarter, reporting revenues of $663.2 million, up 9.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Morningstar a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Morningstar’s revenue to grow 7.5% year on year, in line with the 8.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Morningstar rarely misses Wall Street’s revenue estimates.
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. Nasdaq delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 1.1%, and CME Group reported revenues up 13%, topping estimates by 0.8%. Nasdaq traded up 6.7% following the results while CME Group was also up 3.6%.
Read our full analysis of Nasdaq’s results here and CME Group’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 up 8.9% during the same time and is heading into earnings with an average analyst price target of $239 (compared to the current share price of $208.53).
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