The SEI Investments Company (NASDAQ:SEIC) Annual Results Are Out And Analysts Have Published New Forecasts
Last week, you might have seen that SEI Investments Company (NASDAQ:SEIC) released its annual result to the market. The early response was not positive, with shares down 9.9% to US$53.89 in the past week. SEI Investments reported in line with analyst predictions, delivering revenues of US$1.7b and statutory earnings per share of US$3.00, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for SEI Investments
Following the latest results, SEI Investments' eight analysts are now forecasting revenues of US$1.83b in 2021. This would be a notable 8.9% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to expand 17% to US$3.58. In the lead-up to this report, the analysts had been modelling revenues of US$1.82b and earnings per share (EPS) of US$3.53 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$67.83, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic SEI Investments analyst has a price target of US$72.00 per share, while the most pessimistic values it at US$64.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that SEI Investments' rate of growth is expected to accelerate meaningfully, with the forecast 8.9% revenue growth noticeably faster than its historical growth of 5.0%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SEI Investments to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$67.83, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for SEI Investments going out to 2024, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for SEI Investments you should be aware of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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