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SEI Investments (SEIC) Dip 1.6% as Q1 Earnings & Revenues Miss

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Zacks Equity Research
·3 min read
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Shares of SEI Investments Co. SEIC lost 1.6% in the aftermarket trading in response to the release of its first-quarter 2021 results. Earnings of 89 cents per share missed the Zacks Consensus Estimate by a penny. However, the bottom line reflected 24% growth from the prior-year quarter.

Results were adversely impacted by rise in expenses. However, growth in revenues and an increase in assets under management (AUM) balance acted as tailwinds.

Net income was $129.5 million, up 19% from the year-ago quarter.

Revenues, Expenses & AUM Rise

Total revenues were $455.7 million, up 10% year over year. The upswing reflects an increase in asset management, administration and distribution fees, and information processing and software servicing fees. However, the top line marginally lagged the Zacks Consensus Estimate of $456 million.

Total expenses were $322.8 million, up 6% year over year. The rise was due to an increase in all cost components except for software royalties and other information processing costs.

Operating income rose 21% year over year to $132.8 million.

As of Mar 31, 2021, AUM was $383.7 billion, reflecting a surge of 35% from the prior-year quarter. Client assets under administration (AUA) were $836.2 billion, up 32%. Client AUA does not include $13.3 billion related to Funds of Funds assets that were reported on Mar 31, 2021.

Share Repurchase Update

In the reported quarter, SEI Investments bought back 1.2 million shares for $66.9 million.

Our View

The company’s diversified product offerings are expected to continue boosting financials. Also, rising demand for the SEI Wealth Platform across several financial institutions will likely support profitability. However, continuously increasing operating expenses might hurt bottom-line growth to an extent.

SEI Investments Company Price, Consensus and EPS Surprise

SEI Investments Company Price, Consensus and EPS Surprise
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.

Earnings Dates of Other Asset Managers

Ameriprise Financial AMP is scheduled to announce quarterly numbers of Apr 26, while Invesco IVZ and AllianceBernstein Holding AB are slated to release figures on Apr 27 and Apr 29, respectively.

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