It has been about a month since the last earnings report for SEI Investments (SEIC Quick QuoteSEIC - Free Report) . Shares have added about 18.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is SEI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

SEI Investments' Q3 Earnings Top Estimates, AUM Down

SEI Investments’ third-quarter 2022 adjusted earnings of 77 cents per share outpaced the Zacks Consensus Estimate of 69 cents. The bottom line, however, reflects a decline of 21% from the prior-year quarter.

Higher revenues aided SEIC’s quarterly results. However, a rise in expenses and a fall in assets under management balance were headwinds.

The company’s CEO, Ryan Hicke, noted, “All of our markets are facing a changing landscape, and while this change is challenging, we believe it reinforces growth opportunity for SEI.”

The results in the reported quarter excluded one-time costs of the voluntary separation program. After considering this, net income was $61.7 million, down 55% from the year-ago quarter.

Revenues & AUM Down, Expenses Rise

Total revenues were $471.3 million, down 3% year over year. The fall was due to lower asset management, administration and distribution fees, partly offset by an increase in information processing and software servicing fees. The top line, however, beat the Zacks Consensus Estimate of $459.4 million.

Total expenses were $420.3 million, which jumped 22%. The rise was mainly due to an increase in compensation, benefits and other personnel costs, data processing and computer-related expenses, consulting, outsourcing and professional fees and facilities, supplies and other costs.

Operating income plunged 64% year over year to $51 million.

As of Sep 30, 2022, AUM was $378.2 billion, reflecting a decline of 3% from the prior-year quarter. Client assets under administration (AUA) were $785.4 billion, down 9%. Client AUA did not include $12.5 billion related to Funds of Funds assets reported on Sep 30, 2022.

Share Repurchase Update

In the reported quarter, SEI Investments bought back 0.89 million shares for $49.4 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

At this time, SEI has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SEI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

SEI belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Ameriprise Financial Services (AMP Quick QuoteAMP - Free Report) , has gained 10.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.

Ameriprise reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +1.4%. EPS of $6.43 for the same period compares with $5.91 a year ago.

Ameriprise is expected to post earnings of $6.34 per share for the current quarter, representing a year-over-year change of +3.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.

Ameriprise has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.