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.
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
