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SEI Investments (SEIC) Q1 Earnings Lag Estimates, AUM Declines
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SEI Investments Co.’s (SEIC - Free Report) first-quarter 2020 earnings of 72 cents per share lagged the Zacks Consensus Estimate of 77 cents. Moreover, the figure reflects a decline of 1.4% from the prior-year quarter.
Results were primarily hurt by a rise in expenses. Moreover, a decline in assets under management (AUM) was a headwind. Nevertheless, higher revenues supported results to some extent.
Net income was $109.2 million, down 4.2% from the year-ago quarter.
Revenues & Expenses Rise, AUM Falls
Total revenues were $414.8 million, up 3.5% year over year. The rise reflected higher asset management, administration and distribution fees. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $410.8 million.
Total expenses were $304.5 million, up 2.4% year over year. The rise was due to an increase in almost all components of expenses, except for facilities, supplies and other costs, and software royalties and other information processing costs.
Operating income increased 6.4% year over year to $110.2 million.
As of Mar 31, 2020, AUM was $283.4 billion, reflecting a decline of 14.6% from the prior-year quarter. Client assets under administration (AUA) were $632.3 billion, up 3.8% year over year. Note that client AUA does not include $11.5 billion related to Funds of Funds assets that were reported on Mar 31, 2020.
Share Repurchases
In the reported quarter, SEI Investments bought back 2.4 million shares for $127.4 million.
Our Take
The company’s global presence and diversified product offerings are expected to continue to aid financials. Also, rising demand for the SEI Wealth Platform (“SWP”) across several financial institutions will likely support profitability. However, continuously rising expenses will likely hurt the bottom line in the near term. Also, the company’s increased exposure to fee-based revenues is a concern.
SEI Investments Company Price, Consensus and EPS Surprise
Performance & Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago reported number.
Cohen & Steers’ (CNS - Free Report) first-quarter 2020 adjusted earnings of 61 cents per share missed the Zacks Consensus Estimate of 66 cents. However, the bottom line was 5.2% higher than the year-ago reported figure.
Affiliated Managers Group, Inc. (AMG - Free Report) is slated to announce results on Apr 27.
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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SEI Investments (SEIC) Q1 Earnings Lag Estimates, AUM Declines
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2020 earnings of 72 cents per share lagged the Zacks Consensus Estimate of 77 cents. Moreover, the figure reflects a decline of 1.4% from the prior-year quarter.
Results were primarily hurt by a rise in expenses. Moreover, a decline in assets under management (AUM) was a headwind. Nevertheless, higher revenues supported results to some extent.
Net income was $109.2 million, down 4.2% from the year-ago quarter.
Revenues & Expenses Rise, AUM Falls
Total revenues were $414.8 million, up 3.5% year over year. The rise reflected higher asset management, administration and distribution fees. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $410.8 million.
Total expenses were $304.5 million, up 2.4% year over year. The rise was due to an increase in almost all components of expenses, except for facilities, supplies and other costs, and software royalties and other information processing costs.
Operating income increased 6.4% year over year to $110.2 million.
As of Mar 31, 2020, AUM was $283.4 billion, reflecting a decline of 14.6% from the prior-year quarter. Client assets under administration (AUA) were $632.3 billion, up 3.8% year over year. Note that client AUA does not include $11.5 billion related to Funds of Funds assets that were reported on Mar 31, 2020.
Share Repurchases
In the reported quarter, SEI Investments bought back 2.4 million shares for $127.4 million.
Our Take
The company’s global presence and diversified product offerings are expected to continue to aid financials. Also, rising demand for the SEI Wealth Platform (“SWP”) across several financial institutions will likely support profitability. However, continuously rising expenses will likely hurt the bottom line in the near term. Also, the company’s increased exposure to fee-based revenues is a concern.
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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago reported number.
Cohen & Steers’ (CNS - Free Report) first-quarter 2020 adjusted earnings of 61 cents per share missed the Zacks Consensus Estimate of 66 cents. However, the bottom line was 5.2% higher than the year-ago reported figure.
Affiliated Managers Group, Inc. (AMG - Free Report) is slated to announce results on Apr 27.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>