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 (SEIC) Down 3.3% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for SEI Investments (SEIC - Free Report) . Shares have lost about 3.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is SEI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SEI Investments' Q1 Earnings Meet, Revenues Rise Y/Y
SEI Investments’ first-quarter 2022 earnings of $1.36 per share were in line with the Zacks Consensus Estimate. The bottom line reflects a 53% jump from the prior-year quarter.
The reported quarter comprised a one-time early termination fee of $88 million or 47 cents per share, which was included in information processing and software servicing fees.
Results were aided by revenue growth and an increase in assets under management (AUM) balance. These were offset by a rise in expenses.
Net income was $190.3 million, surging 47% from the year-ago quarter.
Revenues, Expenses & AUM Rise
Total revenues were $581.4 million, up 28% year over year. The upswing reflects an increase in both asset management, administration and distribution fees and information processing and software servicing fees. The top line beat the Zacks Consensus Estimate of $558.1 million.
Total expenses were $366.6 million, up 14%. The rise was due to an increase in all cost components, except for depreciation charges.
Operating income jumped 62% to $214.8 million.
As of Mar 31, 2022, AUM was $385.3 billion, reflecting a marginal rise from the prior-year quarter. Client assets under administration (AUA) were $899.6 billion, up 8%. Client AUA did not include $13.3 billion related to Funds of Funds assets reported on Mar 31, 2022.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 1.7 million shares for $100.1 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, SEI has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SEI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SEI (SEIC) Down 3.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for SEI Investments (SEIC - Free Report) . Shares have lost about 3.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is SEI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SEI Investments' Q1 Earnings Meet, Revenues Rise Y/Y
SEI Investments’ first-quarter 2022 earnings of $1.36 per share were in line with the Zacks Consensus Estimate. The bottom line reflects a 53% jump from the prior-year quarter.
The reported quarter comprised a one-time early termination fee of $88 million or 47 cents per share, which was included in information processing and software servicing fees.
Results were aided by revenue growth and an increase in assets under management (AUM) balance. These were offset by a rise in expenses.
Net income was $190.3 million, surging 47% from the year-ago quarter.
Revenues, Expenses & AUM Rise
Total revenues were $581.4 million, up 28% year over year. The upswing reflects an increase in both asset management, administration and distribution fees and information processing and software servicing fees. The top line beat the Zacks Consensus Estimate of $558.1 million.
Total expenses were $366.6 million, up 14%. The rise was due to an increase in all cost components, except for depreciation charges.
Operating income jumped 62% to $214.8 million.
As of Mar 31, 2022, AUM was $385.3 billion, reflecting a marginal rise from the prior-year quarter. Client assets under administration (AUA) were $899.6 billion, up 8%. Client AUA did not include $13.3 billion related to Funds of Funds assets reported on Mar 31, 2022.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 1.7 million shares for $100.1 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, SEI has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SEI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.