Morningstar, a Chicago-based provider of independent investment research, said late Wednesday that its Q3 net income was $20.8 million, or 41 cents a share, in the third quarter, down from $22.5 million, or 45 cents a share, in the third quarter of 2009.
Analysts had expected earnings of 47 cents a share.
Despite the decline in earnings, the company said it would pay its first dividend of 5 cents a share.
The company's consolidated revenue was $139.8 million in the third quarter of 2010, a 16.4% increase from $120.1 million in the third quarter of 2009. Excluding acquisitions and the impact of foreign currency translations, revenue increased 6.6%.
In the first nine months of 2010, revenue was $404.2 million, an increase of 13% compared with $356.4 million in the same period in 2009. Excluding acquisitions and foreign currency translations, revenue rose 2.6%.
"Organic revenue growth continued to improve in the quarter, with positive trends across most product lines. Licensed Data, Morningstar Direct, and advertising sales on Morningstar.com were the main contributors to organic revenue growth," said Chairman and CEO Joe Mansueto in a press release. "Our investment-management business also had a good quarter, resulting from strong market performance as well as new business wins."
Consolidated operating income declined 12.1% to $88.8 million in the first nine months of 2010, compared with $101.0 million in the first nine months of 2009. Net income was $59.0 million, or $1.16 per share, in the first nine months of 2010, compared with $68.0 million, or $1.37 per share, in the same period in 2009.
