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SEI Investments' (SEIC) Q1 Earnings Meet, Revenues Rise

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SEI Investments Co.’s (SEIC - Free Report) first-quarter 2022 earnings of $1.36 per share were in line with the Zacks Consensus Estimate. The bottom line reflects a 53% jump from the prior-year quarter.

The reported quarter comprised a one-time early termination fee of $88 million or 47 cents per share, which was included in information processing and software servicing fees. After excluding this, earnings per share would have been 89 cents in the first quarter.

Results were aided by revenue growth and an increase in assets under management (AUM) balance. These were offset by a rise in expenses.

Net income was $190.3 million, surging 47% from the year-ago quarter.

Revenues, Expenses & AUM Rise

Total revenues were $581.4 million, up 28% year over year. The upswing reflects an increase in both asset management, administration and distribution fees and information processing and software servicing fees. The top line beat the Zacks Consensus Estimate of $558.1 million.

Total expenses were $366.6 million, up 14%. The rise was due to an increase in all cost components, except for depreciation charges.

Operating income jumped 62% to $214.8 million.

As of Mar 31, 2022, AUM was $385.3 billion, reflecting a marginal rise from the prior-year quarter. Client assets under administration (AUA) were $899.6 billion, up 8%. Client AUA did not include $13.3 billion related to Funds of Funds assets reported on Mar 31, 2022.

Share Repurchase Update

In the reported quarter, SEI Investments bought back 1.7 million shares for $100.1 million.

Conclusion

Of late, SEIC has been on an acquisition spree, and this is expected to significantly improve in market share and top line. Its robust AUM balance, global presence and diverse range of product offerings are expected to continue to drive growth. Also, the company’s technological innovation and rising demand for the SEI Wealth Platform across several financial institutions will keep supporting financials.
 

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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance & Earnings Date of Other Asset Managers

BlackRock, Inc.’s (BLK - Free Report) first-quarter 2022 adjusted earnings of $9.52 per share outpaced the Zacks Consensus Estimate of $8.92. The figure reflects a rise of 18.4% from the year-ago quarter.

BlackRock’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in assets under management (AUM) balance, which was a major positive.

Invesco Ltd. (IVZ - Free Report) is scheduled to release quarterly numbers on Apr 26.

Over the past 30 days, the Zacks Consensus Estimate for Invesco’s quarterly earnings has moved 7.2% lower to 64 cents. This suggests a 5.8% decrease from the prior-year quarter.


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