Income up, revenue down for Morningstar

Morningstar Inc. yesterday announced first-quarter earnings of $25 million, or $0.51 a diluted share, up from $23.1 million, or $0.47 a share, a year earlier.
MAY 01, 2009
Morningstar Inc. yesterday announced first-quarter earnings of $25 million, or $0.51 a diluted share, up from $23.1 million, or $0.47 a share, a year earlier. Consolidated revenue, however, declined 6.9%, to $116.7 million, from $125.4 million a year earlier, the firm reported. “Although organic revenue continued to slow, we believe our rate of revenue decline leveled out within the quarter,” Joe Mansueto, Chicago-based Morningstar’s chairman and chief executive, said in a statement. The firm instituted several cost-saving measures, including a reduction in bonuses, he said. Bonus expenses decreased $7.3 million during the quarter, according to the earnings report. The company also suspended matching contributions to its 401(k) plan and reduced operating expenses by about $2.8 million. In addition, the company reduced advertising and marketing costs by $2.3 million and travel by $800,000. The firm faces a tough third quarter. In July, a five-year agreement in which Morningstar provided independent research to six investment firms involved in a settlement with the Securities and Exchange Commission will end. “On the not-so-bright side, as we’ve previously discussed, the Global Analyst Research Settlement is expiring in July, and we expect our post-settlement equity research revenue to be significantly lower in the second half of the year,” Mr. Mansueto said in the statement. “In addition, as we’ve previously shared, the loss of two investment consulting clients and the market decline to date will create a headwind for our consulting bu

Latest News

Cerulli: Advisors struggle to turn 401(k) savers into wealth clients
Cerulli: Advisors struggle to turn 401(k) savers into wealth clients

Just over 10% of advisors' wealth clients come from defined contribution plans, as capacity, data and technology gaps block the bridge to wealth

Alto to buy Forge Trust from Schwab in self-directed IRA push
Alto to buy Forge Trust from Schwab in self-directed IRA push

Deal creates a $20B-plus custody platform for private market investing in IRAs, months after Schwab closed its Forge Global purchase

Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report
Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report

Despite the good times, advisors should tread carefully, said one veteran industry executive.

Aspen Standard Wealth buys $1B Louisiana RIA Cullen Investment Group
Aspen Standard Wealth buys $1B Louisiana RIA Cullen Investment Group

Cullen marks the fourth firm the New York-based RIA aggregator has bought in 2026 as deal volume heads for a record year.

Strategy before technology: Establishing the foundation for measurable AI value
Strategy before technology: Establishing the foundation for measurable AI value

The quality of AI ROI measurement depends on pre-deployment decisions around business outcomes, leadership alignment, and establishing trusted information, among other factors.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor