Morningstar drops after admitting late 2018 market downturn hurt asset growth
Morningstar last night reported Q4 earnings per share of 99c, up from 91c a year ago, on revenue of $262.7M, up 8.1% from last year. "Morningstar reached a significant milestone in 2018, surpassing $1 billion in revenue for the first time," said Kunal Kapoor, Morningstar's CEO in the earnings statement. "This achievement resulted from putting investors first and providing exceptional experiences that support better investor outcomes. While the late 2018 downturn in global markets impacted net flows and asset growth in Morningstar Managed Portfolios, we experienced record flows into the ETFs built on Morningstar Indexes." Morningstar said market volatility negatively impacted net flows into Morningstar Managed Portfolios and impacted overall assets in Morningstar Investment Management and Workplace Solutions, particularly in Q4. Assets under management and advisement in Managed Portfolios increased by $1.2B in 2018 and were relatively flat year over year in Workplace Solutions. Morningstar.com premium subscriptions did not meet the company's expectations for growth in 2018, the company admitted. "We recently refreshed the Morningstar.com website and plan additional improvements in 2019," it noted. Shares of Morningstar are down 2%, or $2.62, to $124.60 in early trading.