We issued an updated research report on
SEI Investments Co.
) on Jun 25, 2014. Mounting expenses remain as a major drag on the
company's profitability. Nevertheless, better-than-expected
first-quarter results released on Apr 23 which included steady
growth in top line was encouraging.
SEI Investment has been witnessing a persistent rise in expenses
over the preceding few quarters. While in first quarter expenses
were up 6%, it has grown at a CAGR of 10.0% over the last three
years (2011-2013). As the company continues to build its
operational infrastructure, costs are expected to surge further in
the near term.
Moreover, the Zacks Consensus Estimate for 2014 decreased 1.2% to
$1.68 per share over the last 60 days. For 2015, the Zacks
Consensus Estimate declined 1.5% to $1.91 per share over the same
However, SEI Investments has recorded consistent improvement in
revenue in the past few years. Given the company's diversified
product and revenue mix as well as its strong global presence, we
expect the trend to continue in the quarters ahead.
SEI Investments currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Some better-ranked investment managers include
Woori Finance Holdings Co., Ltd.
Ameriprise Financial, Inc.
). While Woori Finance sports a Zacks Rank #1 (Strong Buy),
Ameriprise and BlackRock hold a Zacks Rank #2 (Buy).
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