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SEI (SEIC) Up 0.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for SEI Investments (SEIC - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SEI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
SEI Investments Q2 Earnings & Revenues Beat, Costs Up
SEI Investments’ second-quarter 2021 earnings of 93 cents per share beat the Zacks Consensus Estimate by a penny. The bottom line reflected 37% growth from the prior-year quarter.
Results benefited from higher revenues and an increase in assets under management (AUM) balance. These were partly offset by rise in expenses.
Net income was $133.8 million, up 32% from the year-ago quarter.
Revenues, Expenses & AUM Rise
Total revenues were $475.7 million, up 19% year over year. The upswing reflects an increase in asset management, administration and distribution fees, and information processing and software servicing fees. The top line outpaced the Zacks Consensus Estimate of $463.1 million.
Total expenses were $339.6 million, up 13%. The rise was due to an increase in all cost components except for consulting, outsourcing and professional fees.
Operating income surged 36% year over year to $136 million.
As of Jun 30, 2021, AUM was $399.1 billion, reflecting a jump of 26% from the prior-year quarter. Client assets under administration (AUA) were $880.4 billion, up 27%. Client AUA did not include $13.5 billion related to Funds of Funds assets that were reported on Jun 30, 2021.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 2.1 million shares for $129.2 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, SEI has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, SEI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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SEI (SEIC) Up 0.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for SEI Investments (SEIC - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SEI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
SEI Investments Q2 Earnings & Revenues Beat, Costs Up
SEI Investments’ second-quarter 2021 earnings of 93 cents per share beat the Zacks Consensus Estimate by a penny. The bottom line reflected 37% growth from the prior-year quarter.
Results benefited from higher revenues and an increase in assets under management (AUM) balance. These were partly offset by rise in expenses.
Net income was $133.8 million, up 32% from the year-ago quarter.
Revenues, Expenses & AUM Rise
Total revenues were $475.7 million, up 19% year over year. The upswing reflects an increase in asset management, administration and distribution fees, and information processing and software servicing fees. The top line outpaced the Zacks Consensus Estimate of $463.1 million.
Total expenses were $339.6 million, up 13%. The rise was due to an increase in all cost components except for consulting, outsourcing and professional fees.
Operating income surged 36% year over year to $136 million.
As of Jun 30, 2021, AUM was $399.1 billion, reflecting a jump of 26% from the prior-year quarter. Client assets under administration (AUA) were $880.4 billion, up 27%. Client AUA did not include $13.5 billion related to Funds of Funds assets that were reported on Jun 30, 2021.
Share Repurchase Update
In the reported quarter, SEI Investments bought back 2.1 million shares for $129.2 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, SEI has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, SEI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.