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SEI Investments (SEIC) Q1 Earnings Beat as Revenues & AUM Rise
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SEI Investments Co.’s (SEIC - Free Report) first-quarter 2024 earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 97 cents. The bottom line reflects a rise of 25% 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 $131.4 million, up 23% from the year-ago quarter. Our estimate for the metric was $117.8 million.
Revenues & AUM Improve, Expenses Rise
Total revenues were $511.6 million, up 9% 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 $505.4 million.
Total expenses were $385.7 million, rising 5% year over year. The increase was due to higher compensation, benefits and other personnel costs; software royalties and other information processing costs; stock-based compensation expenses; amortization costs; and data processing and computer-related costs. Our estimate for expenses was $382.7 million.
Operating income increased 24% year over year to $125.9 million. Our estimate for the metric was $107.1 million.
As of Mar 31, 2024, AUM was $443.6 billion, reflecting a rise of 8% from the prior-year quarter. Client assets under administration (AUA) were $983.3 billion, up 16% year over year. Client AUA did not include $11.0 billion related to Funds of Funds assets reported as of Mar 31, 2024.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 0.8 million shares for $56 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) first-quarter 2024 adjusted earnings of $9.81 per share handily surpassed the Zacks Consensus Estimate of $9.42. The figure reflects a jump of 24% from the year-ago quarter.
BLK’s results benefited from a rise in revenues and higher non-operating income. Further, the AUM balance witnessed an improvement, driven by net inflows. However, higher expenses acted as a dampener.
Invesco’s (IVZ - Free Report) first-quarter 2024 adjusted earnings of 33 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line declined 13.2% from the prior-year quarter.
IVZ’s results were primarily hurt by a decline in adjusted revenues, along with higher adjusted expenses. However, an increase in the AUM balance on decent inflows was a positive.
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SEI Investments (SEIC) Q1 Earnings Beat as Revenues & AUM Rise
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2024 earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 97 cents. The bottom line reflects a rise of 25% 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 $131.4 million, up 23% from the year-ago quarter. Our estimate for the metric was $117.8 million.
Revenues & AUM Improve, Expenses Rise
Total revenues were $511.6 million, up 9% 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 $505.4 million.
Total expenses were $385.7 million, rising 5% year over year. The increase was due to higher compensation, benefits and other personnel costs; software royalties and other information processing costs; stock-based compensation expenses; amortization costs; and data processing and computer-related costs. Our estimate for expenses was $382.7 million.
Operating income increased 24% year over year to $125.9 million. Our estimate for the metric was $107.1 million.
As of Mar 31, 2024, AUM was $443.6 billion, reflecting a rise of 8% from the prior-year quarter. Client assets under administration (AUA) were $983.3 billion, up 16% year over year. Client AUA did not include $11.0 billion related to Funds of Funds assets reported as of Mar 31, 2024.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 0.8 million shares for $56 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 carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2024 adjusted earnings of $9.81 per share handily surpassed the Zacks Consensus Estimate of $9.42. The figure reflects a jump of 24% from the year-ago quarter.
BLK’s results benefited from a rise in revenues and higher non-operating income. Further, the AUM balance witnessed an improvement, driven by net inflows. However, higher expenses acted as a dampener.
Invesco’s (IVZ - Free Report) first-quarter 2024 adjusted earnings of 33 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line declined 13.2% from the prior-year quarter.
IVZ’s results were primarily hurt by a decline in adjusted revenues, along with higher adjusted expenses. However, an increase in the AUM balance on decent inflows was a positive.