Analysts Forecast 6.2% Q4 Revenue Growth to $627.5M, EPS $2.36 for Morningstar
Analysts forecast Morningstar’s Q4 revenue to rise 6.2% year-on-year to $627.5 million with adjusted EPS of $2.36. The stock has fallen 24.7% over the past month against peers like S&P Global (+9% revenue growth) and Nasdaq (+13.4%), and carries a $280.67 average price target.
1. Q4 Revenue and EPS Expectations
Morningstar is projected to report Q4 revenue of $627.5 million, reflecting 6.2% year-on-year growth, with analysts forecasting adjusted earnings per share of $2.36. This marks a slowdown from the 9.7% revenue increase recorded in the same quarter last year.
2. Historical Performance Track Record
In the prior quarter, Morningstar beat revenue estimates by 2.4%, achieving $617.4 million in sales, up 8.4% year-on-year, while missing EPS forecasts. Over the past two years, the firm has exceeded revenue estimates in all but one quarter, averaging a 1% top-line beat.
3. Peer Comparisons
Within the financial exchanges and data segment, S&P Global delivered 9% year-on-year revenue growth meeting estimates, and Nasdaq posted 13.4% growth, topping forecasts by 1.4%. Nasdaq shares fell 1.8% post-results, offering a benchmark for Morningstar’s upcoming report.
4. Stock Performance and Price Target
Morningstar’s share price has declined 24.7% over the last month, underperforming its sector, while analysts maintain an average price target of $280.67 versus the current $161.50 trading level, indicating significant upside potential if results reassure investors.