The 10-second takeaway
For the quarter ended March 31 (Q1), Morningstar missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank.
Margins shrank across the board.
Morningstar recorded revenue of $151.8 million. The one analyst polled by S&P Capital IQ predicted revenue of $160.5 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $151.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.44. The one earnings estimate compiled by S&P Capital IQ anticipated $0.46 per share. GAAP EPS of $0.40 for Q1 were 9.1% lower than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.7%, 450 basis points worse than the prior-year quarter. Operating margin was 18.9%, 420 basis points worse than the prior-year quarter. Net margin was 12.5%, 230 basis points worse than the prior-year quarter.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 986 members out of 1,014 rating the stock outperform, and 28 members rating it underperform. Among 414 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 408 give Morningstar a green thumbs-up, and six give it a red thumbs-down.
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