We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SEI Investments (SEIC) Q4 Earnings Meet, Expenses Rise Y/Y
Read MoreHide Full Article
SEI Investments Co.’s (SEIC - Free Report) fourth-quarter 2023 earnings of 91 cents per share met the Zacks Consensus Estimate. The bottom line reflects a rise of 10% from the prior-year quarter.
Results benefited from higher revenues and an increase in the assets under management (AUM) balance. Higher expenses acted as a headwind.
Net income was $120.7 million, up 8% from the year-ago quarter. Our estimate for the metric was $113.7 million.
Earnings per share of $3.46 for 2023 were in line with the consensus estimate and stable year over year. Net income declined 3% to $462.3 million.
Revenues & AUM Rise, Expenses Up
Total revenues for the reported quarter were $484.9 million, up 6% year over year. The rise was driven by higher asset management, administration and distribution fees and information processing and software servicing fees. Also, the top line beat the Zacks Consensus Estimate of $481.2 million.
Total revenues for 2023 fell 4% to $1.92 billion. The top line matched the consensus estimate.
Total expenses were $345.5 million, rising 4%. The increase was mainly due to higher compensation, benefits and other personnel costs; facilities, supplies and other costs; and data processing and computer-related costs. Our estimate for expenses was $367.5 million.
Operating income increased 8% to $101.7 million. Our estimate for the metric was $103.5 million.
As of Dec 31, AUM was $432 billion, reflecting a rise of 8%. Client assets under administration (AUA) were $942.8 billion, up 16% year over year. Client AUA did not include $11.2 billion related to Funds of Funds assets reported on Dec 31, 2023.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 1.2 million shares for $68.9 million.
Conclusion
Elevated expenses are expected to hurt the company’s bottom line. SEIC’s increased exposure to fee-based revenues is another major concern. However, its robust AUM balance, global presence and diverse range of product offerings are expected to continue driving growth.
SEI Investments Company Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2023 adjusted earnings of $9.66 per share handily surpassed the Zacks Consensus Estimate of $8.84. The figure reflects an increase of 8.2% from the year-ago quarter.
BLK’s quarterly results benefited from a rise in revenues and higher non-operating income. Further, AUM balance witnessed an improvement owing to net inflows. However, higher expenses acted as a dampener.
Invesco’s (IVZ - Free Report) fourth-quarter 2023 adjusted earnings of 47 cents per share handily surpassed the Zacks Consensus Estimate of 38 cents. The bottom line grew 20.5% from the prior-year quarter.
Results benefited from an increase in AUM balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
SEI Investments (SEIC) Q4 Earnings Meet, Expenses Rise Y/Y
SEI Investments Co.’s (SEIC - Free Report) fourth-quarter 2023 earnings of 91 cents per share met the Zacks Consensus Estimate. The bottom line reflects a rise of 10% from the prior-year quarter.
Results benefited from higher revenues and an increase in the assets under management (AUM) balance. Higher expenses acted as a headwind.
Net income was $120.7 million, up 8% from the year-ago quarter. Our estimate for the metric was $113.7 million.
Earnings per share of $3.46 for 2023 were in line with the consensus estimate and stable year over year. Net income declined 3% to $462.3 million.
Revenues & AUM Rise, Expenses Up
Total revenues for the reported quarter were $484.9 million, up 6% year over year. The rise was driven by higher asset management, administration and distribution fees and information processing and software servicing fees. Also, the top line beat the Zacks Consensus Estimate of $481.2 million.
Total revenues for 2023 fell 4% to $1.92 billion. The top line matched the consensus estimate.
Total expenses were $345.5 million, rising 4%. The increase was mainly due to higher compensation, benefits and other personnel costs; facilities, supplies and other costs; and data processing and computer-related costs. Our estimate for expenses was $367.5 million.
Operating income increased 8% to $101.7 million. Our estimate for the metric was $103.5 million.
As of Dec 31, AUM was $432 billion, reflecting a rise of 8%. Client assets under administration (AUA) were $942.8 billion, up 16% year over year. Client AUA did not include $11.2 billion related to Funds of Funds assets reported on Dec 31, 2023.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 1.2 million shares for $68.9 million.
Conclusion
Elevated expenses are expected to hurt the company’s bottom line. SEIC’s increased exposure to fee-based revenues is another major concern. However, its robust AUM balance, global presence and diverse range of product offerings are expected to continue driving growth.
SEI Investments Company Price, Consensus and EPS Surprise
SEI Investments Company price-consensus-eps-surprise-chart | SEI Investments Company Quote
Currently, SEI Investments sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2023 adjusted earnings of $9.66 per share handily surpassed the Zacks Consensus Estimate of $8.84. The figure reflects an increase of 8.2% from the year-ago quarter.
BLK’s quarterly results benefited from a rise in revenues and higher non-operating income. Further, AUM balance witnessed an improvement owing to net inflows. However, higher expenses acted as a dampener.
Invesco’s (IVZ - Free Report) fourth-quarter 2023 adjusted earnings of 47 cents per share handily surpassed the Zacks Consensus Estimate of 38 cents. The bottom line grew 20.5% from the prior-year quarter.
Results benefited from an increase in AUM balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.