It has been about a month since the last earnings report for SEI Investments (SEIC Quick QuoteSEIC - Free Report) . Shares have added about 1.9% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is SEI 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 Q1 Earnings Beat as Revenues & AUM Rise

SEI Investments’ 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 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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

At this time, SEI has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.

Outlook

SEI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

SEI is part of the Zacks Financial - Investment Management industry. Over the past month, Ameriprise Financial Services (AMP Quick QuoteAMP - Free Report) , a stock from the same industry, has gained 5.7%. The company reported its results for the quarter ended March 2024 more than a month ago.

Ameriprise reported revenues of $4.1 billion in the last reported quarter, representing a year-over-year change of +10.9%. EPS of $8.39 for the same period compares with $7.25 a year ago.

Ameriprise is expected to post earnings of $8.55 per share for the current quarter, representing a year-over-year change of +14.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ameriprise. Also, the stock has a VGM Score of B.