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SEI Investments Q1 Earnings Top Estimates as Revenues Increase Y/Y

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SEI Investments Co.’s (SEIC - Free Report) first-quarter 2025 earnings per share (EPS) of $1.17 beat the Zacks Consensus Estimate of $1.12. Moreover, the bottom line reflected a rise of 18.2% from the prior-year quarter's level.

Results were aided by higher revenues and a rise in assets under management (AUM). However, higher expenses acted as spoilsports.

Net income was $151.5 million, up 15.3% from the year-ago quarter's level. Our estimate for the metric was $145.8 million.

SEIC’s Revenues & AUM Improve, Expenses Rise

Total revenues were $551.3 million, up 7.8% year over year. The rise was driven by higher asset management, administration, and distribution fees, as well as information processing and software servicing fees. Moreover, the top line surpassed the Zacks Consensus Estimate of $546.7 million.

Total expenses were $394.2 million, up 2.2% year over year. The increase was driven by all the components except compensation, benefits and other personnel, and depreciation charges. Our estimate for the metric was $413.3 million.

Operating income increased 24.8% year over year to $157.1 million. Our estimate for the metric was $131.6 million.

As of March 31, 2025, AUM was $486 billion, reflecting a rise of 9.6% from the prior-year quarter's reported actuals. Client assets under administration (AUA) were $1.08 trillion, up 10.3% year over year. Client AUA did not include $10.9 billion related to Funds of Funds assets reported as of March 31, 2025.

SEI Investments’ Share Repurchase Update

In the reported quarter, SEI Investments bought back 2.5 million shares for $192.8 million at an average price of $77.10 per share.

Our View on SEIC

SEI Investments’ elevated operating expenses, driven by technological upgrades alongside concentrated fee-based revenues, are concerns. Nonetheless, global presence, diverse product offerings, solid balance sheet, strategic acquisitions and robust AUM balance are expected to support the top line.

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 #4 (Sell).

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

Performance of Other Asset Managers

Invesco’s (IVZ - Free Report) first-quarter 2025 adjusted earnings of 44 cents per share surpassed the Zacks Consensus Estimate of 39 cents. Moreover, the bottom line jumped 33.3% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

IVZ’s results were primarily aided by higher adjusted net revenues. An increase in the AUM balance due to decent inflows was positive too. However, higher adjusted operating expenses were a woe.

BlackRock’s (BLK - Free Report) first-quarter 2025 adjusted earnings of $11.30 per share handily surpassed the Zacks Consensus Estimate of $10.43. The figure reflects a rise of 15% from the year-ago quarter.

BLK’s results benefited from a rise in revenues. AUM witnessed robust growth and touched a record high of $11.58 trillion, driven by net inflows and favorable forex impact, partially offset by market depreciation. However, higher expenses and lower non-operating income were headwinds.


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