Oct 24 Morningstar Inc's third-quarter
profit rose 27 percent as the investment research firm kept a
lid on operating costs, mainly by setting aside less money for
Net income rose to $27.1 million, or 56 cents per share,
from $21.4 million, or 42 cents per share, a year earlier.
Revenue was largely flat at $161 million as much of the
investment industry continues to struggle in an uncertain
Morningstar said challenges faced by the variable annuity
industry, which accounted for nearly 15 percent of its
investment management unit's revenue, may continue to weigh on
"Our customers in the variable annuity business are facing
near-record low interest rates and market volatility," Chief
Executive Joe Mansueto said in a statement.
Revenue from the investment management unit fell 7.7 percent
to $31.6 million.
However, overall operating expenses fell 4 percent to $121
million in the quarter, boosting the company's margins.
"We've been clamping down on expenses, and we're seeing the
benefits of greater cost control in areas such as travel,
hiring, and advertising,"
"We're also taking steps to streamline and simplify our
product lines and have announced several small divestitures," he
The companys said its investment information unit, which is
also its biggest, registered a 2.8 percent growth on a 24.3
percent jump in licensing revenue from the company's Morningstar
Direct investment analysis platform.
The Chicago-based company's shares, which have risen more
than 7 percent in the past three months, closed at $62.54 on
Wednesday on the Nasdaq.