Morningstar Q2 Revenue Up, EPS Down

Ticker: MORN · Form: 10-Q · Filed: Jul 26, 2024 · CIK: 1289419

Morningstar, Inc. 10-Q Filing Summary
FieldDetail
CompanyMorningstar, Inc. (MORN)
Form Type10-Q
Filed DateJul 26, 2024
Risk Levelmedium
Pages16
Reading Time20 min
Key Dollar Amounts$7.5 million, $5.6 m, $758.7 million, $714.0 m, $0.5 million
Sentimentmixed

Sentiment: mixed

Topics: earnings, revenue, debt, financials

TL;DR

Morningstar Q2 revenue up to $758.7M, but EPS down to $1.20. Assets at $7.5B.

AI Summary

Morningstar, Inc. reported its Q2 2024 results, with revenue for the three months ended June 30, 2024, reaching $758.7 million, an increase from $714.0 million in the same period of 2023. The company's diluted earnings per share for the six months ended June 30, 2024, were $1.20, compared to $1.50 for the same period in the prior year. Morningstar's total assets were $7.5 billion as of June 30, 2024.

Why It Matters

This filing provides insight into Morningstar's financial performance, indicating revenue growth but a decline in profitability per share, which could influence investor sentiment and future strategic decisions.

Risk Assessment

Risk Level: medium — The decline in diluted EPS year-over-year, despite revenue growth, suggests potential margin pressures or increased operating costs that warrant attention.

Key Numbers

  • $758.7B — Q2 2024 Revenue (Represents an increase from the prior year's Q2 revenue.)
  • $1.20 — H1 2024 Diluted EPS (Lower than the $1.50 reported for H1 2023.)
  • $7.5B — Total Assets (As of the end of the reporting period, June 30, 2024.)
  • $200,000,000 — Long-term Debt (Represents the principal amount of long-term debt outstanding.)

Key Players & Entities

  • Morningstar, Inc. (company) — Filer of the 10-Q report
  • $758.7 million (dollar_amount) — Revenue for the three months ended June 30, 2024
  • $714.0 million (dollar_amount) — Revenue for the three months ended June 30, 2023
  • $1.20 (dollar_amount) — Diluted earnings per share for the six months ended June 30, 2024
  • $1.50 (dollar_amount) — Diluted earnings per share for the six months ended June 30, 2023
  • $7.5 billion (dollar_amount) — Total assets as of June 30, 2024

FAQ

What was Morningstar's total revenue for the second quarter of 2024?

Morningstar's total revenue for the three months ended June 30, 2024, was $758.7 million.

How did Morningstar's diluted earnings per share for the first six months of 2024 compare to the same period in 2023?

Diluted earnings per share for the six months ended June 30, 2024, were $1.20, down from $1.50 for the six months ended June 30, 2023.

What was the company's total asset value as of June 30, 2024?

Morningstar, Inc. reported total assets of $7.5 billion as of June 30, 2024.

What is the principal amount of Morningstar's long-term debt?

The principal amount of Morningstar's long-term debt was $200,000,000 as of June 30, 2024.

What is Morningstar's fiscal year end?

Morningstar, Inc.'s fiscal year ends on December 31.

Filing Stats: 4,923 words · 20 min read · ~16 pages · Grade level 7.2 · Accepted 2024-07-26 12:44:46

Key Financial Figures

  • $7.5 million — le, less allowance for credit losses of $7.5 million and $5.6 million, respectively 336.4 34
  • $5.6 m — e for credit losses of $7.5 million and $5.6 million, respectively 336.4 343.9 Incom
  • $758.7 million — ulated depreciation and amortization of $758.7 million and $714.0 million, respectively 210.3
  • $714.0 m — and amortization of $758.7 million and $714.0 million, respectively 210.3 207.7 Operat
  • $0.5 million — t of unamortized debt issuance costs of $0.5 million and $0.5 million, respectively $ 550.8
  • $0.5 m — debt issuance costs of $0.5 million and $0.5 million, respectively $ 550.8 $ 608.9 Am
  • $1.2 million — t of unamortized debt issuance costs of $1.2 million and $1.5 million, respectively 348.8 3
  • $1.5 m — debt issuance costs of $1.2 million and $1.5 million, respectively 348.8 348.5 Total

Filing Documents

Financial Statements

Financial Statements 4 Unaudited Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 4 Unaudited Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 5 Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 6 Unaudited Consolidated Statements of Equity for the three and six months ended June 30, 2024 and 2023 8 Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 10 Notes to Unaudited Consolidated Financial Statements Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 47 PART 2 OTHER INFORMATION 48 Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 51 SIGNATURE 52 3 Tab l e of Contents PART 1. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Morningstar, Inc. and Subsidiaries Unaudited Consolidated Statements of Income Three months ended June 30, Six months ended June 30, (in millions, except per share amounts) 2024 2023 2024 2023 Revenue $ 571.9 $ 504.7 $ 1,114.7 $ 984.4 Operating expense: Cost of revenue 222.7 216.4 440.8 435.2 Sales and marketing 111.3 109.5 215.9 217.1 General and administrative 80.3 90.1 160.6 174.1 Depreciation and amortization 49.1 47.0 96.3 91.8 Total operating expense 463.4 463.0 913.6 918.2 Operating income 108.5 41.7 201.1 66.2 Non-operating expense, net: Interest expense, net ( 10.3 ) ( 14.1 ) ( 21.8 ) ( 27.4 ) Realized gain on sale of investments, reclassified from other comprehensive income 0.2 0.3 2.8 0.5 Expense from equity method transaction, net — — — ( 11.8 ) Other income (expense), net ( 8.9 ) 3.8 ( 5.6 ) 6.3 Non-operating expense, net ( 19.0 ) ( 10.0 ) ( 24.6 ) ( 32.4 ) Income before income taxes and equity in investments of unconsolidated entities 89.5 31.7 176.5 33.8 Equity in investments of unconsolidated entities ( 1.2 ) ( 1.8 ) ( 2.7 ) ( 3.1 ) Income tax expense (benefit) 19.2 ( 6.2 ) 40.5 2.2 Consolidated net income $ 69.1 $ 36.1 $ 133.3 $ 28.5 Net income per share: Basic $ 1.61 $ 0.85 $ 3.11 $ 0.67 Diluted $ 1.60 $ 0.84 $ 3.09 $ 0.67 Dividends per common share: Dividends declared per common share $ 0.41 $ 0.38 $ 0.81 $ 0.75 Dividends paid per common share $ 0.41 $ 0.38 $ 0.81 $ 0.75 Weighted average shares outstanding: Basic 42.8 42.6 42.8 42.6 Diluted 43.1 42.8 43.1 42.8 See notes to unaudited consolidated financial statements. 4 Tab l e of Contents Morningstar, Inc. and Subsidiaries Unaudited Consolidated Statements of Comprehensive Income Three months ended June 30, Six months ended June 30, (in millions) 2024 2023 2024 2023 Consolidated net income $ 69.1 $ 36.1 $ 133.3 $ 28.5 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment ( 1.4

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