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SEI Investments (SEIC) Q2 Earnings Lag Estimates, AUM Declines
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SEI Investments Co.’s (SEIC - Free Report) second-quarter 2020 earnings of 68 cents per share lagged the Zacks Consensus Estimate of 69 cents. Moreover, the figure reflects a decline of 17.1% from the prior-year quarter.
Results were primarily hurt by a rise in expenses and lower revenues. Moreover, a decline in assets under management (AUM) was a headwind.
Net income was $101.1 million, down 20.1% from the year-ago quarter.
Revenues & AUM Decline, Expenses Rise
Total revenues were $400.6 million, down 2.2% year over year. The fall reflected a decline in both components of revenues. Moreover, the reported figure lagged the Zacks Consensus Estimate of $403.2 million.
Total expenses were $300.3 million, up 3.8% year over year. The rise was due to an increase in stock-based compensation costs, consulting, outsourcing and professional fees, data processing and computer-related costs, amortization expenses, and depreciation costs.
Operating income declined 16.5% year over year to $100.3 million.
As of Jun 30, 2020, AUM was $317.8 billion, reflecting a decline of 5.2% from the prior-year quarter. Client assets under administration (AUA) were $692.5 billion, up 9.8% year over year. Note that client AUA does not include $11.3 billion related to Funds of Funds assets that were reported on Jun 30, 2020.
Share Repurchases
In the reported quarter, SEI Investments bought back 1.6 million shares for $89.5 million.
Our Take
The company’s 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.
SEI Investments Company Price, Consensus and EPS Surprise
Performance & Earnings Release Dates of Other Companies
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2020 adjusted earnings of $7.85 per share hugely surpassed the Zacks Consensus Estimate of $6.90. The figure reflects a rise of 22.5% from the year-ago quarter’s number.
Affiliated Managers Group, Inc. (AMG - Free Report) and Waddell & Reed Financial, Inc. are scheduled to announce quarterly results on Jul 27 and Jul 28, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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SEI Investments (SEIC) Q2 Earnings Lag Estimates, AUM Declines
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2020 earnings of 68 cents per share lagged the Zacks Consensus Estimate of 69 cents. Moreover, the figure reflects a decline of 17.1% from the prior-year quarter.
Results were primarily hurt by a rise in expenses and lower revenues. Moreover, a decline in assets under management (AUM) was a headwind.
Net income was $101.1 million, down 20.1% from the year-ago quarter.
Revenues & AUM Decline, Expenses Rise
Total revenues were $400.6 million, down 2.2% year over year. The fall reflected a decline in both components of revenues. Moreover, the reported figure lagged the Zacks Consensus Estimate of $403.2 million.
Total expenses were $300.3 million, up 3.8% year over year. The rise was due to an increase in stock-based compensation costs, consulting, outsourcing and professional fees, data processing and computer-related costs, amortization expenses, and depreciation costs.
Operating income declined 16.5% year over year to $100.3 million.
As of Jun 30, 2020, AUM was $317.8 billion, reflecting a decline of 5.2% from the prior-year quarter. Client assets under administration (AUA) were $692.5 billion, up 9.8% year over year. Note that client AUA does not include $11.3 billion related to Funds of Funds assets that were reported on Jun 30, 2020.
Share Repurchases
In the reported quarter, SEI Investments bought back 1.6 million shares for $89.5 million.
Our Take
The company’s 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.
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 & Earnings Release Dates of Other Companies
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2020 adjusted earnings of $7.85 per share hugely surpassed the Zacks Consensus Estimate of $6.90. The figure reflects a rise of 22.5% from the year-ago quarter’s number.
Affiliated Managers Group, Inc. (AMG - Free Report) and Waddell & Reed Financial, Inc. are scheduled to announce quarterly results on Jul 27 and Jul 28, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>