BOSTON, Feb 19 (Reuters) - Morningstar Inc reported lower-than-expected fourth-quarter profit on Thursday as higher costs and a drop in asset-based fees led to slower revenue growth at the research company.
The Chicago-based company, best known for its system of rating mutual fund performance, posted net income of $19.3 million, or 39 cents a share, down 3.7 percent from $20.0 million or 41 cents a share, a year ago.
Analysts, on average, had expected earnings of 43 cents a share, according to Reuters Estimates.
Revenue rose modestly to $119.3 million from $118.1 million, and the company's chief executive and founder blamed turbulent financial markets for slower revenue growth.
'About 13 percent of our revenue is tied to asset-based fees, so the severe market downturn had a negative impact,' said Joe Mansueto, who runs the company he started as a student in Chicago.
Morningstar's share price has dropped 7.86 percent so far this year, far less than some publicly traded asset management or financial companies. The stock fell 18 cents to close at $32.53 on Nasdaq.
(Reporting by Svea Herbst-Bayliss; editing by Richard Chang) Keywords: MORNINGSTAR/ (Svea.Herbst@Reuters.com; +1 617 856 4331; Reuters Messaging: svea.herbst.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Chicago-based company, best known for its system of rating mutual fund performance, posted net income of $19.3 million, or 39 cents a share, down 3.7 percent from $20.0 million or 41 cents a share, a year ago.
Analysts, on average, had expected earnings of 43 cents a share, according to Reuters Estimates.
Revenue rose modestly to $119.3 million from $118.1 million, and the company's chief executive and founder blamed turbulent financial markets for slower revenue growth.
'About 13 percent of our revenue is tied to asset-based fees, so the severe market downturn had a negative impact,' said Joe Mansueto, who runs the company he started as a student in Chicago.
Morningstar's share price has dropped 7.86 percent so far this year, far less than some publicly traded asset management or financial companies. The stock fell 18 cents to close at $32.53 on Nasdaq.
(Reporting by Svea Herbst-Bayliss; editing by Richard Chang) Keywords: MORNINGSTAR/ (Svea.Herbst@Reuters.com; +1 617 856 4331; Reuters Messaging: svea.herbst.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.