Morningstar Q2 revenue, adjusted EPS rise on credit segment growth

Overview

• Investment research provider's Q2 revenue rose 9.6% yr/yr

• Adjusted EPS for Q2 rose 29.2% yr/yr

• Company repurchased $100 mln in shares during the quarter

Outlook

• Morningstar says momentum continues in Morningstar Credit, driven by private ratings activity

• Company is expanding collaborations with model and enterprise technology providers to broaden content access

Result Drivers

• CREDIT SEGMENT GROWTH - Morningstar Credit drove revenue growth with robust issuance and strength in structured finance ratings and US/Canadian corporates

• DIRECT PLATFORM EXPANSION - Morningstar Direct Platform revenue rose due to client expansion, new use cases, and higher revenue per license

• PITCHBOOK PLATFORM - PitchBook revenue growth was led by its platform and direct data business, though offset by softness in venture capital and elevated churn in corporate clients

Company press release: ID:nBw4lDHt0a

Key Details

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 is $215.00, about 10.8% above its July 28 closing price of $194.12

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

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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.)