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SEI Investments (SEIC) Up 2.6% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for SEI Investments Company (SEIC - Free Report) . Shares have added about 2.6% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 Tops Q4 Earnings on Higher AUM
SEI Investments reported fourth-quarter 2016 earnings per share of $0.55, outpacing the Zacks Consensus Estimate of $0.50. Moreover, the bottom line improved 14.6% from the prior-year quarter.
Higher revenues and income from operations, coupled with improvement in assets under management (AUM), aided the results. However, the quarter witnessed an increase in expenses.
Net income for the quarter came in at $88.6 million, up 8.9% from the year-ago period.
The company reported full-year earnings per share of $2.03, outpacing the Zacks Consensus Estimate of $1.99. Moreover, the figure represents an increase of 3.6% from the prior-year quarter. Also, net income for 2016 came in at $333.8 million, up nearly 1% year over year.
Revenues and AUM Grow, Expenses Escalate
Revenues for the quarter grew nearly 10% year over year to $368.8 million. The rise mainly reflected an increase in asset management, administration and distribution fees as well as higher information processing and software servicing fees. Moreover, the figure surpassed the Zacks Consensus Estimate of $359.8 million.
For the full-year, revenues came in at $1.40 billion, outpacing the Zacks Consensus Estimate of $1.39 billion. Also, the reported figure was up 5% year over year.
Total expenses amounted to $270.7 million, up 6.9% year over year. Components other than software royalties & other information processing costs, brokerage commissions, stock-based compensation, and facilities, supplies and other costs recorded an upside.
Operating income rose 19.4% year over year to $98.1 million.
As of Dec 31, 2016, AUM rose 7.9% year over year to $283.1 billion. Total client AUM was $468 billion, up 14.7% year over year. Note that client AUM as of Dec 31, 2016 does not include $1.3 billion related to Funds of Funds assets that were reported on Dec 31, 2015.
Share Repurchase
In the reported quarter, SEI Investments bought back 1.4 million shares of its common stock for $66.8 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There has been one revision lower for the current quarter.
At this time, SEI Investments' stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with a 'D'. Following the exact same course, the stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% 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.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.
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SEI Investments (SEIC) Up 2.6% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for SEI Investments Company (SEIC - Free Report) . Shares have added about 2.6% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 Tops Q4 Earnings on Higher AUM
SEI Investments reported fourth-quarter 2016 earnings per share of $0.55, outpacing the Zacks Consensus Estimate of $0.50. Moreover, the bottom line improved 14.6% from the prior-year quarter.
Higher revenues and income from operations, coupled with improvement in assets under management (AUM), aided the results. However, the quarter witnessed an increase in expenses.
Net income for the quarter came in at $88.6 million, up 8.9% from the year-ago period.
The company reported full-year earnings per share of $2.03, outpacing the Zacks Consensus Estimate of $1.99. Moreover, the figure represents an increase of 3.6% from the prior-year quarter. Also, net income for 2016 came in at $333.8 million, up nearly 1% year over year.
Revenues and AUM Grow, Expenses Escalate
Revenues for the quarter grew nearly 10% year over year to $368.8 million. The rise mainly reflected an increase in asset management, administration and distribution fees as well as higher information processing and software servicing fees. Moreover, the figure surpassed the Zacks Consensus Estimate of $359.8 million.
For the full-year, revenues came in at $1.40 billion, outpacing the Zacks Consensus Estimate of $1.39 billion. Also, the reported figure was up 5% year over year.
Total expenses amounted to $270.7 million, up 6.9% year over year. Components other than software royalties & other information processing costs, brokerage commissions, stock-based compensation, and facilities, supplies and other costs recorded an upside.
Operating income rose 19.4% year over year to $98.1 million.
As of Dec 31, 2016, AUM rose 7.9% year over year to $283.1 billion. Total client AUM was $468 billion, up 14.7% year over year. Note that client AUM as of Dec 31, 2016 does not include $1.3 billion related to Funds of Funds assets that were reported on Dec 31, 2015.
Share Repurchase
In the reported quarter, SEI Investments bought back 1.4 million shares of its common stock for $66.8 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There has been one revision lower for the current quarter.
SEI Investments Company Price and Consensus
SEI Investments Company Price and Consensus | SEI Investments Company Quote
VGM Scores
At this time, SEI Investments' stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with a 'D'. Following the exact same course, the stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% 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.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.