Markets
LM

SEI Investments (SEIC) Tops Q4 Earnings on Higher AUM

SEI Investments Co.SEIC reported fourth-quarter 2016 earnings per share of 55 cents, outpacing the Zacks Consensus Estimate of 50 cents. Moreover, the bottom line improved 14.6% from the prior-year quarter.

Higher revenues and income from operations, coupled with improvement in assets under management (AUM), aided the results. However, the quarter witnessed an increase in expenses.

Net income for the quarter came in at $88.6 million, up 8.9% from the year-ago period.

The company reported full-year earnings per share of $2.03, outpacing the Zacks Consensus Estimate of $1.99. Moreover, the figure represents an increase of 3.6% from the prior-year quarter. Also, net income for 2016 came in at $333.8 million, up nearly 1% year over year.

Revenues and AUM Grow, Expenses Escalate

Revenues for the quarter grew nearly 10% year over year to $368.8 million. The rise mainly reflected an increase in asset management, administration and distribution fees as well as higher information processing and software servicing fees. Moreover, the figure surpassed the Zacks Consensus Estimate of $359.8 million.

For the full-year, revenues came in at $1.40 billion, outpacing the Zacks Consensus Estimate of $1.39 billion. Also, the reported figure was up 5% year over year.

Total expenses amounted to $270.7 million, up 6.9% year over year. Components other than software royalties & other information processing costs, brokerage commissions, stock-based compensation, and facilities, supplies and other costs recorded an upside.

Operating income rose 19.4% year over year to $98.1 million.

As of Dec 31, 2016, AUM rose 7.9% year over year to $283.1 billion. Total client AUM was $468 billion, up 14.7% year over year. Note that client AUM as of Dec 31, 2016 does not include $1.3 billion related to Funds of Funds assets that were reported on Dec 31, 2015.

Share Repurchase

In the reported quarter, SEI Investments bought back 1.4 million shares of its common stock for $66.8 million.

Our Take

SEI Investments' innovative and diverse global investment products and services makes it well positioned to grow organically. Moreover, robust asset inflows are likely to be accretive to the company's overall growth. Further, impressive capital deployment activities should enhance shareholder value.

However, elevated expenses, increased reliance on fee-based revenues and regulatory constraints remain primary concerns for the company.

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

Among other Investment managers, Waddell & Reed Financial Inc. WDR is slated to report results on Jan 31. Ameriprise Financial, Inc. AMP and Legg Mason, Inc. LM are slated to release their numbers on Feb 1.

Zacks' Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Waddell & Reed Financial, Inc. (WDR): Free Stock Analysis Report

Legg Mason, Inc. (LM): Free Stock Analysis Report

AMERIPRISE FINANCIAL SERVICES, INC. (AMP): Free Stock Analysis Report

SEI Investments Company (SEIC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

LM SEIC WDR AMP

Other Topics

Earnings Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More