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Why Is SEI (SEIC) Up 7.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for SEI Investments (SEIC - Free Report) . Shares have added about 7.7% in that time frame, outperforming 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’ Q3 Earnings Beat as Revenues & AUM Rise
SEI Investments’ third-quarter 2024 earnings per share of $1.19 surpassed the Zacks Consensus Estimate of $1.07. The bottom line reflected a rise of 36.8% from the prior-year quarter. Results in the reported quarter included a one-time gain of 5 cents per share related to the sale of property located in New York and a large one-time performance fee from LSV of 3 cents per share.
Results benefited from higher revenues and an increase in the assets under management (AUM) balance. Higher expenses acted as a headwind.
Net income was $154.9 million, up 33.9% from the year-ago quarter's level. Our estimate for the metric was $136.5 million.
Revenues & AUM Improve, Expenses Rise
Total revenues were $537.4 million, up 12.7% year over year. The rise was driven by higher asset management, administration, and distribution fees as well as information processing and software servicing fees. Moreover, the top line surpassed the Zacks Consensus Estimate of $533.2 million.
Total expenses were $393.6 million, up 6.9% year over year. The increase was driven by all the components except consulting, outsourcing and professional fees, and depreciation. Our estimate for the metric was $393.7 million.
Operating income increased 32.6% year over year to $143.8 million. Our estimate for the metric was $132.3 million.
As of Sept. 30, 2024, AUM was $493.3 billion, reflecting a rise of 21.4% from the prior-year quarter's reported actuals. Client assets under administration (AUA) were $1.05 trillion, up 17.4% year over year. Client AUA did not include $8.5 billion related to Funds of Funds assets reported as of Sept. 30, 2024.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 1.3 million shares for $85.8 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 5.87% due to these changes.
VGM Scores
At this time, SEI has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise SEI has a Zacks Rank #1 (Strong Buy). We expect an above average 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, BlackRock Finance (BLK - Free Report) , a stock from the same industry, has gained 4.5%. The company reported its results for the quarter ended September 2024 more than a month ago.
BlackRock Finance reported revenues of $5.2 billion in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $11.46 for the same period compares with $10.91 a year ago.
BlackRock Finance is expected to post earnings of $11.55 per share for the current quarter, representing a year-over-year change of +19.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for BlackRock Finance. Also, the stock has a VGM Score of F.
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Why Is SEI (SEIC) Up 7.7% Since Last Earnings Report?
It has been about a month since the last earnings report for SEI Investments (SEIC - Free Report) . Shares have added about 7.7% in that time frame, outperforming 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’ Q3 Earnings Beat as Revenues & AUM Rise
SEI Investments’ third-quarter 2024 earnings per share of $1.19 surpassed the Zacks Consensus Estimate of $1.07. The bottom line reflected a rise of 36.8% from the prior-year quarter. Results in the reported quarter included a one-time gain of 5 cents per share related to the sale of property located in New York and a large one-time performance fee from LSV of 3 cents per share.
Results benefited from higher revenues and an increase in the assets under management (AUM) balance. Higher expenses acted as a headwind.
Net income was $154.9 million, up 33.9% from the year-ago quarter's level. Our estimate for the metric was $136.5 million.
Revenues & AUM Improve, Expenses Rise
Total revenues were $537.4 million, up 12.7% year over year. The rise was driven by higher asset management, administration, and distribution fees as well as information processing and software servicing fees. Moreover, the top line surpassed the Zacks Consensus Estimate of $533.2 million.
Total expenses were $393.6 million, up 6.9% year over year. The increase was driven by all the components except consulting, outsourcing and professional fees, and depreciation. Our estimate for the metric was $393.7 million.
Operating income increased 32.6% year over year to $143.8 million. Our estimate for the metric was $132.3 million.
As of Sept. 30, 2024, AUM was $493.3 billion, reflecting a rise of 21.4% from the prior-year quarter's reported actuals. Client assets under administration (AUA) were $1.05 trillion, up 17.4% year over year. Client AUA did not include $8.5 billion related to Funds of Funds assets reported as of Sept. 30, 2024.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 1.3 million shares for $85.8 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 5.87% due to these changes.
VGM Scores
At this time, SEI has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise SEI has a Zacks Rank #1 (Strong Buy). We expect an above average 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, BlackRock Finance (BLK - Free Report) , a stock from the same industry, has gained 4.5%. The company reported its results for the quarter ended September 2024 more than a month ago.
BlackRock Finance reported revenues of $5.2 billion in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $11.46 for the same period compares with $10.91 a year ago.
BlackRock Finance is expected to post earnings of $11.55 per share for the current quarter, representing a year-over-year change of +19.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for BlackRock Finance. Also, the stock has a VGM Score of F.