We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SEI Investments' (SEIC) Q2 Earnings In Line, AUM Improves
Read MoreHide Full Article
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2018 earnings of 75 cents per share were in line with the Zacks Consensus Estimate. Also, the figure grew 32% from the prior-year quarter.
An increase in total revenues, partly offset by higher operating expenses, aided the company’s results. Assets under management (AUM) witnessed solid growth.
Net income was $121.6 million, increasing 33% from the year-ago period.
Revenues and AUM Improve, Expenses Rise
Total revenues were $404.8 million, increasing 9% year over year. The rise reflected an increase in asset management, administration and distribution fees as well as information processing and software servicing fees. Further, the figure surpassed the Zacks Consensus Estimate of $403.1 million.
Total expenses during the quarter were $294.5 million, increasing 7% year over year. The rise was mainly due to higher compensation, benefits and other personnel costs, subadvisory, distribution and other asset management costs, consulting, outsourcing and professional fees, data processing and computer-related fees along with facilities, supplies and other costs.
Operating income increased 13% year over year to $110.3 million.
As of Jun 30, 2018, AUM was $331.1 billion, reflecting an increase of 7% from the prior-year quarter. Total client AUM was $545.1 billion, increasing 10% year over year. Note that client AUM does not include $11.6 billion related to Funds of Funds assets that were reported on Jun 30, 2018.
Share Repurchase
In the reported quarter, SEI Investments bought back 1.6 million shares for $104.6 million.
Other Development
During the reported quarter, SEI Investments acquired Huntington Steele, LLC, a registered investment advisor servicing the ultra-high-net-worth market. The deal resulted in a rise in AUM, revenues and expenses during the second quarter. Notably, Huntington Steele was integrated with the company’s Investments in New Businesses segment.
Our Take
SEI Investments’ continuously mounting expenses remain a big concern. It expects expenses to continue rising due to additional investment spending on services. However, the company’s innovative and diverse global investment products and services position it well to grow organically.
SEI Investments Company Price, Consensus and EPS Surprise
BlackRock’s (BLK - Free Report) second-quarter 2018 adjusted earnings of $6.66 per share outpaced the Zacks Consensus Estimate of $6.60. Results benefited from an improvement in revenues, rise in AUM and steady long-term inflows. However, an increase in operating expenses acted as a headwind.
The Blackstone Group L.P. (BX - Free Report) reported second-quarter 2018 economic net income of 90 cents per share, which handily outpaced the Zacks Consensus Estimate of 71 cents. The quarter saw a substantial jump in revenues and growth in assets under management, which was mainly driven by inflows. However, rise in expenses was the undermining factor.
Cohen & Steers’ (CNS - Free Report) second-quarter 2018 adjusted earnings came in at 59 cents per share, missing the Zacks Consensus Estimate by 3 cents. Results reflected an increase in revenues, partially offset by higher operating expenses.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
SEI Investments' (SEIC) Q2 Earnings In Line, AUM Improves
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2018 earnings of 75 cents per share were in line with the Zacks Consensus Estimate. Also, the figure grew 32% from the prior-year quarter.
An increase in total revenues, partly offset by higher operating expenses, aided the company’s results. Assets under management (AUM) witnessed solid growth.
Net income was $121.6 million, increasing 33% from the year-ago period.
Revenues and AUM Improve, Expenses Rise
Total revenues were $404.8 million, increasing 9% year over year. The rise reflected an increase in asset management, administration and distribution fees as well as information processing and software servicing fees. Further, the figure surpassed the Zacks Consensus Estimate of $403.1 million.
Total expenses during the quarter were $294.5 million, increasing 7% year over year. The rise was mainly due to higher compensation, benefits and other personnel costs, subadvisory, distribution and other asset management costs, consulting, outsourcing and professional fees, data processing and computer-related fees along with facilities, supplies and other costs.
Operating income increased 13% year over year to $110.3 million.
As of Jun 30, 2018, AUM was $331.1 billion, reflecting an increase of 7% from the prior-year quarter. Total client AUM was $545.1 billion, increasing 10% year over year. Note that client AUM does not include $11.6 billion related to Funds of Funds assets that were reported on Jun 30, 2018.
Share Repurchase
In the reported quarter, SEI Investments bought back 1.6 million shares for $104.6 million.
Other Development
During the reported quarter, SEI Investments acquired Huntington Steele, LLC, a registered investment advisor servicing the ultra-high-net-worth market. The deal resulted in a rise in AUM, revenues and expenses during the second quarter. Notably, Huntington Steele was integrated with the company’s Investments in New Businesses segment.
Our Take
SEI Investments’ continuously mounting expenses remain a big concern. It expects expenses to continue rising due to additional investment spending on services. However, the company’s innovative and diverse global investment products and services position it well to grow organically.
SEI Investments Company Price, Consensus and EPS Surprise
SEI Investments Company Price, Consensus and EPS Surprise | 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 Asset Managers
BlackRock’s (BLK - Free Report) second-quarter 2018 adjusted earnings of $6.66 per share outpaced the Zacks Consensus Estimate of $6.60. Results benefited from an improvement in revenues, rise in AUM and steady long-term inflows. However, an increase in operating expenses acted as a headwind.
The Blackstone Group L.P. (BX - Free Report) reported second-quarter 2018 economic net income of 90 cents per share, which handily outpaced the Zacks Consensus Estimate of 71 cents. The quarter saw a substantial jump in revenues and growth in assets under management, which was mainly driven by inflows. However, rise in expenses was the undermining factor.
Cohen & Steers’ (CNS - Free Report) second-quarter 2018 adjusted earnings came in at 59 cents per share, missing the Zacks Consensus Estimate by 3 cents. Results reflected an increase in revenues, partially offset by higher operating expenses.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>