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SEI Investments (SEIC) Q4 Earnings Beat Estimates, AUM Up Y/Y
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SEI Investments Co.’s (SEIC - Free Report) fourth-quarter 2020 earnings of 86 cents per share surpassed the Zacks Consensus Estimate of 80 cents. Moreover, the figure reflects a rise of 2.4% from the prior-year quarter.
Results for the quarter benefited from growth in revenues, partly offset by higher expenses. Moreover, an increase in assets under management (AUM) balance was a tailwind.
Net income was $125.9 million, down 2.2% from the year-ago quarter.
For 2020, earnings of $3.00 per share surpassed the Zacks Consensus Estimate of $2.94. However, the figure reflects a decline of 7.4% from 2019. Net income was $447.3 million, down 10.8% from the year-ago figure.
Revenues, Expenses & AUM Increase
Total revenues for the quarter were $443.7 million, up 4.8% year over year. The upswing reflects an increase in asset management, administration and distribution fees, and information processing and software servicing fees. The reported figure surpassed the Zacks Consensus Estimate of $437.1 million.
For the year, total revenues were $1.68 billion, up 2.1% year over year. The figure was in line with the Zacks Consensus Estimate.
Total quarterly expenses were $319.7 million, up 4.1% year over year. The rise was due to an increase in almost all cost components except for software royalties and other information processing costs, stock-based compensation costs, and facilities, supplies and other costs.
Operating income rose 6.8% year over year to $124 million.
As of Dec 31, 2020, AUM was $368.7 billion, reflecting a rise of 4.7% from the prior-year quarter. Client assets under administration (AUA) were $786.7 billion, up 15.1% year over year. Client AUA does not include $12.9 billion related to Funds of Funds assets that were reported on Dec 31, 2020.
Share Repurchases
In the reported quarter, SEI Investments bought back 1.8 million shares for $99.1 million.
Our Take
The company’s diversified product offerings are expected to continue boosting financials. Also, rising demand for the SEI Wealth Platform (“SWP”) across several financial institutions will likely support profitability. However, continuously increasing operating expenses (as witnessed in the fourth quarter as well) will likely hurt bottom-line growth to an extent in the near term.
SEI Investments Company Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2020 adjusted earnings of $10.18 per share surpassed the Zacks Consensus Estimate of $8.84. The figure reflects a rise of 22.1% from the year-ago quarter’s number.
Invesco (IVZ - Free Report) reported fourth-quarter 2020 adjusted earnings of 72 cents per share, surpassing the Zacks Consensus Estimate of 57 cents. Also, the bottom line grew 12.5% from the prior-year quarter.
Blackstone’s (BX - Free Report) fourth-quarter 2020 distributable earnings of $1.13 per share surpassed the Zacks Consensus Estimate of 93 cents. Moreover, the figure represents a rise of 56.9% from the prior-year quarter.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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SEI Investments (SEIC) Q4 Earnings Beat Estimates, AUM Up Y/Y
SEI Investments Co.’s (SEIC - Free Report) fourth-quarter 2020 earnings of 86 cents per share surpassed the Zacks Consensus Estimate of 80 cents. Moreover, the figure reflects a rise of 2.4% from the prior-year quarter.
Results for the quarter benefited from growth in revenues, partly offset by higher expenses. Moreover, an increase in assets under management (AUM) balance was a tailwind.
Net income was $125.9 million, down 2.2% from the year-ago quarter.
For 2020, earnings of $3.00 per share surpassed the Zacks Consensus Estimate of $2.94. However, the figure reflects a decline of 7.4% from 2019. Net income was $447.3 million, down 10.8% from the year-ago figure.
Revenues, Expenses & AUM Increase
Total revenues for the quarter were $443.7 million, up 4.8% year over year. The upswing reflects an increase in asset management, administration and distribution fees, and information processing and software servicing fees. The reported figure surpassed the Zacks Consensus Estimate of $437.1 million.
For the year, total revenues were $1.68 billion, up 2.1% year over year. The figure was in line with the Zacks Consensus Estimate.
Total quarterly expenses were $319.7 million, up 4.1% year over year. The rise was due to an increase in almost all cost components except for software royalties and other information processing costs, stock-based compensation costs, and facilities, supplies and other costs.
Operating income rose 6.8% year over year to $124 million.
As of Dec 31, 2020, AUM was $368.7 billion, reflecting a rise of 4.7% from the prior-year quarter. Client assets under administration (AUA) were $786.7 billion, up 15.1% year over year. Client AUA does not include $12.9 billion related to Funds of Funds assets that were reported on Dec 31, 2020.
Share Repurchases
In the reported quarter, SEI Investments bought back 1.8 million shares for $99.1 million.
Our Take
The company’s diversified product offerings are expected to continue boosting financials. Also, rising demand for the SEI Wealth Platform (“SWP”) across several financial institutions will likely support profitability. However, continuously increasing operating expenses (as witnessed in the fourth quarter as well) will likely hurt bottom-line growth to an extent in the near term.
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 of Other Companies
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2020 adjusted earnings of $10.18 per share surpassed the Zacks Consensus Estimate of $8.84. The figure reflects a rise of 22.1% from the year-ago quarter’s number.
Invesco (IVZ - Free Report) reported fourth-quarter 2020 adjusted earnings of 72 cents per share, surpassing the Zacks Consensus Estimate of 57 cents. Also, the bottom line grew 12.5% from the prior-year quarter.
Blackstone’s (BX - Free Report) fourth-quarter 2020 distributable earnings of $1.13 per share surpassed the Zacks Consensus Estimate of 93 cents. Moreover, the figure represents a rise of 56.9% from the prior-year quarter.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>