Morningstar, Inc. - MORN STOCK NEWS

Morningstar announced that CFO Jason Dubinsky will step down from his role at the end of 2024 to pursue other interests. During his seven-year tenure since 2017, the company's value tripled while revenue, operating profit, and cash flow more than doubled. Dubinsky will continue as CFO until December 31, 2024, and remain in a consulting role through June 30, 2025, to ensure a smooth transition. The company has initiated a succession process and reported Q3 earnings showing continued growth and margin expansion.

Morningstar (MORN) reported strong Q3 2024 financial results with revenue increasing 10.5% to $569.4 million and organic revenue growing 10.1%. Operating income surged 65% to $115.5 million, while diluted EPS rose 204.4% to $2.77. The company's performance was driven by strength across most business segments, particularly Morningstar Credit, PitchBook, and Data & Analytics. Operating margin expanded to 20.3% from 13.6% year-over-year. The company also reported improved cash flows, with operating cash flow increasing 46.8% to $191.9 million and free cash flow rising 53.6% to $155.8 million.

Morningstar has released its eighth annual study on Health Savings Accounts (HSAs), evaluating 11 top providers for both investment and spending use cases. The study reveals significant improvements in HSA features, including lower fees and better investment options. However, only four providers received an Above Average or better rating for both use cases.

Key findings include:

• Total HSA assets reached $123 billion in 2023
• Fidelity leads providers with a High assessment for both spending and savings accounts
• HSA contribution limits are set to increase in 2025
• Providers' investment menus are strong, with at least 89% of each lineup consisting of funds with Gold, Silver, or Bronze Morningstar Medalist Ratings

The study emphasizes the need for improved transparency and participant awareness to maximize HSA potential.

Morningstar's third annual Voice of the Asset Owner survey reveals expanding ESG materiality, rising active ownership, and growing demand for improved ESG data among asset owners. The survey, covering 500 asset owners across 11 countries with combined assets of $18 trillion, shows:

1. 67% of asset owners say ESG has become more material in the past year, with an average of 42% of AUM incorporating ESG factors.

2. Climate remains the top ESG concern, but Social and Governance factors have seen significant increases in materiality.

3. 78% of asset owners view active ownership as useful in driving ESG implementation, with direct engagement considered the most effective tactic.

4. 43% of asset owners consider ESG data the most valuable component for implementing ESG strategies, compared to 24% for ratings and 23% for indexes.

5. Asset owners are optimistic about AI's potential impact on ESG data provision, with over 70% hoping for increased AI adoption in the next five years.

Morningstar, Inc. (Nasdaq: MORN) has announced that it will release its third-quarter 2024 financial results after the market closes on Wednesday, Oct. 23, 2024. The company has stated that it does not conduct analyst conference calls. However, investors are invited to submit their questions in writing to Morningstar's investor relations team at investors@morningstar.com.

Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, has announced a quarterly dividend of 40.5 cents per share. This dividend declaration, made by the company's board of directors, is consistent with the previous dividend paid in July. The dividend is scheduled to be paid on October 31, 2024, to shareholders of record as of October 4, 2024. This announcement demonstrates Morningstar's commitment to returning value to its shareholders through regular dividend payments. Investors seeking additional information are encouraged to contact the company's investor relations team at investors@morningstar.com.

Morningstar (Nasdaq: MORN) announced plans to enhance its Morningstar Medalist Rating™ methodology, aiming to provide more comprehensive and forward-looking investment insights. The updated approach will incorporate quantitative and qualitative factors, including a new Morningstar Quantitative Rating and an expanded People Pillar assessment. These changes are set to be implemented in Q4 2023, affecting approximately 4,500 fund share classes globally.

The enhancements will result in a more holistic evaluation of investment strategies, considering factors such as fees, process, people, parent organization, and performance. Morningstar aims to increase coverage and provide more timely updates to ratings, ultimately benefiting investors with improved decision-making tools.

Morningstar Retirement, part of Morningstar, Inc. (Nasdaq: MORN), has launched the Morningstar Model of U.S. Retirement Outcomes, a simulation tool assessing retirement income sufficiency. Key findings from the model reveal:

1. 57% of those not participating in future defined-contribution plans may face retirement shortfalls, compared to 21% for those with 20+ years of participation.

2. Approximately 45% of American households are predicted to run short of money in retirement.

3. 55% of single females may be at risk in retirement, compared to 41% of couples and 40% of single males.

4. Socioeconomic disparities exist, with 61% of Hispanic Americans and 59% of non-Hispanic Black Americans projected to face shortfalls.

5. Delaying retirement can significantly reduce risk: 54% at age 62, 45% at 65, 38% at 67, and 28% at 70.

Morningstar, Inc. (Nasdaq: MORN) reported strong financial results for Q2 2024, with revenue increasing 13.3% to $571.9 million and organic revenue growing 13.6%. The company saw significant improvements in profitability, with operating income rising 160.2% to $108.5 million and adjusted operating income up 87.9%. Diluted net income per share increased 90.5% to $1.60, while adjusted diluted net income per share grew 54.6% to $2.01.

Key highlights include strong performance across most business segments, particularly Morningstar Credit, PitchBook, and Morningstar Data and Analytics. The company also reported improved cash flows and a strengthened balance sheet. Morningstar's CEO, Kunal Kapoor, emphasized the company's focus on durable growth in adjusted operating income and ongoing product enhancements for customers.