SEI Investments Co.’s SEIC fourth-quarter 2019 earnings of 84 cents per share lagged the Zacks Consensus Estimate of 86 cents. However, the figure reflects a rise of 15.1% from the prior-year quarter.
Results were hurt by a rise in expenses. However, growth in revenues and assets under management (AUM) were tailwinds.
Net income was $128.7 million, up 10.9% from the year-ago quarter.
For 2019, earnings per share were $3.24, which lagged the Zacks Consensus Estimate of $3.26. However, the figure reflects growth of 3.2% from the previous year. Net income for the year was $501.4 million, down marginally from that reported in 2018.
Revenues & AUM Improve, Expenses Rise
Total quarterly revenues were $423.2 million, up 4.5% year over year. The rise reflected higher asset management, administration and distribution fees. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $422.5 million.
For 2019, total revenues were $1.65 billion, up 1.6% year over year. The rise reflected higher asset management, administration and distribution fees. The reported figure was in line with the Zacks Consensus Estimate.
Total quarterly expenses were $307.1 million, up 1.7% year over year. The rise was due to an increase in almost all components of expenses, except for software royalties and other information processing costs; compensation, benefits and other personnel expenses; and depreciation costs.
Operating income increased 12.8% year over year to $116.1 million.
As of Dec 31, 2019, AUM was $352 billion, reflecting a rise of 14.6% from the prior-year quarter. Client assets under administration (AUA) were $683.3 billion, up 19.4% year over year. Note that client AUA does not include $13.1 billion related to Funds of Funds assets that were reported on Dec 31, 2019.
In the reported quarter, SEI Investments bought back 1.3 million shares for $81.2 million.
The company’s solid AUM balance, global presence, diversified product offerings and rising demand for SEI Wealth Platform (SWP) are expected to continue to aid financials. Also, its enhanced capital-deployment activities will likely continue to reward shareholders.
SEI Investments Company Price, Consensus and EPS Surprise
SEI Investments Company price-consensus-eps-surprise-chart | SEI Investments Company Quote
Currently, SEI Investments sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance & Release Date of Other Investment Managers
BlackRock, Inc.’s BLK fourth-quarter 2019 adjusted earnings of $8.34 per share surpassed the Zacks Consensus Estimate of $7.67. Moreover, the figure was 37.2% higher than the year-ago quarter’s number.
Cohen & Steers’ CNS fourth-quarter 2019 adjusted earnings of 74 cents per share surpassed the Zacks Consensus Estimate of 67 cents. Also, the bottom line was 32.1% higher than the year-ago quarter figure.
Affiliated Managers Group, Inc. AMG is slated to announce results on Feb 3.
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