Morningstar, Inc. - MORN STOCK NEWS

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.

Morningstar (Nasdaq: MORN) will release its Q2 2024 financial results on July 24, 2024, after market close. The company will not host an analyst conference call. Investors can send written questions to investors@morningstar.com for further inquiries.

Morningstar's board has announced a quarterly dividend of 40.5 cents per share. This dividend matches the amount paid in April. The dividend will be payable on July 31, 2024, to shareholders who are on record as of July 12, 2024. For further inquiries, investors can reach out to investors@morningstar.com.

Morningstar announced significant enhancements to its Sustainalytics ESG Risk Ratings on May 30. Key updates include a revised corporate governance methodology and the addition of three new material ESG risk measures. These changes affect over 16,000 companies globally and represent the most substantial updates since the ratings were introduced in 2018. Morningstar's research shows that 67% of global asset owners find ESG increasingly material to investment policy. The new methodology aims to improve investor confidence, reduce risks, and enhance brand value. Full implementation of these updates is expected by September 2024.

Morningstar (Nasdaq: MORN) has announced that Rod Diefendorf will be appointed as the new President and Chief Operating Officer of PitchBook, following the departure of founder John Gabbert. Diefendorf, who has been with PitchBook since 2016, has nearly 30 years of experience in the technology sector. He has been instrumental in driving PitchBook's strategic roadmap and global operations. CEO Kunal Kapoor expressed confidence in Diefendorf's ability to continue the company's growth and uphold its commitment to providing transparent investment insights. Diefendorf emphasized his dedication to maintaining the company's vision and passion.

Morningstar, Inc. awarded Clare Hart the 'Outstanding Portfolio Manager' title for 2024, recognizing her leadership at JPMorgan Equity Income Fund. The fund achieved a 9.4% annualized gain under Hart's guidance, outperforming its benchmarks. Hart's tenure reflects a strategic focus on reliable dividends and value-leaning sectors, with a reputation for prudent investment decisions.

Morningstar, Inc. reported strong first-quarter 2024 financial results with a 13.2% revenue growth to $542.8 million, operating income increase to $92.6 million, and adjusted diluted net income per share rising to $1.73. The Company's various segments, including Morningstar Data and Analytics, PitchBook, Morningstar Wealth, Morningstar Credit, Morningstar Retirement, and Corporate and All Other, all showed positive revenue growth and adjusted operating income increases. Cash provided by operating activities increased by 300.0% to $93.6 million, and free cash flow improved to $59.5 million. Despite the overall positive performance, Morningstar's 2024 Annual Meeting of Shareholders will be held on May 10, 2024, in Chicago.

Morningstar's latest report highlights the rapid growth of active ETFs, with a 20% annual surge since 2019, reaching a market share of 8.5%. The report explores the advantages and challenges of active ETFs, showcasing how they offer a cost-effective and tax-efficient approach to active management for investors. However, it also emphasizes the long-term risks associated with active investments. The growth of active ETFs can be attributed to regulatory changes, product developments, and market events, making them a promising opportunity for investors and active managers amidst outflows in active mutual funds. The report also covers the cost savings of active ETFs compared to mutual funds, the leading issuers and funds in the space, and the different approaches asset managers can take in launching and managing active ETFs.