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SEI Investments (SEIC) Q3 Earnings Meet, Revenues & Costs Rise

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SEI Investments Co.’s (SEIC - Free Report) third-quarter 2021 earnings of 97 cents per share was in line with the Zacks Consensus Estimate. The bottom line reflected 29% growth from the prior-year quarter.

Results were aided by growth in revenues and an increase in assets under management (AUM) balance. These were offset by a rise in expenses.

Net income was $138 million, up 24% from the year-ago quarter.

Revenues, Expenses & AUM Rise

Total revenues were $485.3 million, up 14% year over year. The upswing reflects an increase in asset management, administration and distribution fees, and information processing and software servicing fees. The top line outpaced the Zacks Consensus Estimate of $481 million.

Total expenses were $344.2 million, up 10% year over year. The rise was due to an increase in all cost components, except for consulting, outsourcing and professional fees, and facilities, supplies and other costs.

Operating income increased 27% year over year to $141.1 million.

As of Sep 30, 2021, AUM was $391.5 billion, reflecting a jump of 19% from the prior-year quarter. Client assets under administration (AUA) were $866.3 billion, up 15%. Client AUA did not include $13.7 billion related to Funds of Funds assets that were reported on Sep 30, 2021.

Share Repurchase Update

In the reported quarter, SEI Investments bought back 2 million shares for $119.9 million.

Our Take

The persistent rise in expenses (as witnessed in the third quarter as well) will likely hurt the company’s bottom line to an extent. As its business is mainly technology-driven, costs related to the same are expected to continue rising. Nevertheless, its diversified product offerings are expected to continue boosting financials.

SEI Investments Company Price, Consensus and EPS Surprise

 

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 #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates of Other Asset Managers

Ameriprise Financial (AMP - Free Report) and Invesco (IVZ - Free Report) are scheduled to announce quarterly numbers on Oct 26, while AllianceBernstein Holding (AB - Free Report) is slated to release the same on Oct 28.