SEI Investments (SEIC) Q2 Earnings & Revenues Beat, Costs Up

SEI Investments Co.’s SEIC 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.

Our Take

The company’s diversified product offerings are expected to continue boosting financials. Rising demand for the SEI Wealth Platform across several financial institutions is likely to support profitability. However, increasing operating expenses might hurt bottom-line growth to an extent.

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


Earnings Dates of Other Asset Managers

Ameriprise Financial AMP is scheduled to announce quarterly numbers of Jul 26, while Invesco IVZ and AllianceBernstein Holding AB are slated to release the same on Jul 27 and Jul 29, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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