Chicago data-tracking firm Morningstar Inc. reported quarterly earnings below Wall Street estimates, hurt by higher expenses, and said it would pay a dividend for the first time.
Net income for the third quarter was $20.8 million, or 41 cents a share, compared with $22.5 million, or 45 cents a share a year earlier.
Analysts expected the company to earn 47 cents a share, according to Thomson Reuters I/B/E/S.
Morningstar, which tracks mutual funds and other industries, said consolidated revenue rose 16.4 percent to $139.8 million.
Operating margin fell 6.4 percentage points to 21.6 percent, reflecting higher compensation, bonuses and commissions.
Operating expenses were 78 percent of revenue in the quarter.
The company, best known for its 5-star system of rating mutual funds, said it will pay a dividend of 5 cents a share.
The board also approved repurchase of up to $100 million of common stock.
The company’s shares, which have lost 8 percent since its last quarterly results, closed at $47.95 on Nasdaq Wednesday.
