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SEI Investments (SEIC) Q4 Earnings Beat, Revenues & Costs Rise

SEI Investments Co.’s SEIC fourth-quarter 2021 earnings of $1.03 per share surpassed the Zacks Consensus Estimate of 97 cents. The bottom line reflects 6.2% growth from the prior-year quarter.

Results were aided by growth in revenues and an increase in assets under management (AUM) balance. These were offset by a rise in expenses.

Net income was $145.3 million, up 15.4% from the year-ago quarter.

In 2021, earnings per share of $3.81 surpassed the Zacks Consensus Estimate of $3.76. In 2020, the company reported earnings per share of $3.00. Net income of $546.6 million increased 22.2% year over year.

Revenues, Expenses & AUM Rise

Total quarterly revenues were $501.7 million, up 13.1% 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 $487 million.

In 2021, revenues were $1.92 billion, up 13.9% year over year. The top line outpaced the Zacks Consensus Estimate of $1.91 billion.

Total expenses were $358.3 million, up 12.1% year over year. The rise was due to an increase in all cost components, except for consulting, outsourcing and professional fees.

Operating income increased 15.6% year over year to $143.4 million.

As of Dec 31, 2021, AUM was $405.1 billion, reflecting a rise of 9.9% from the prior-year quarter. Client assets under administration (AUA) were $911.9 billion, up 15.9%. Client AUA did not include $14.4 billion related to Funds of Funds assets that were reported on Dec 31, 2021.

Share Repurchase Update

In the reported quarter, SEI Investments bought back 1.5 million shares for $95.5 million.

Conclusion

In November 2021, SEI Investments acquired a global portfolio intelligence platform company, Novus Partners, in an effort to broaden capabilities for institutional investors and investment management clients. Also, the company closed the buyout of Atlas, Capita’s defined contribution master trust, thus, entering a successful, long-term strategic partnership with Capita.

In October, SEIC acquired the provider of cloud-native financial technology, Finomial. The financial technology was integrated into SEI Investments’ existing investor-focused platforms, thus, enhancing the company’s automation and digitization capabilities.

The company’s robust AUM balance, global presence and diverse range of product offerings are expected to continue to drive growth. SEIC’s technological innovation and rising demand for the SEI Wealth Platform across several financial institutions will keep supporting financials.

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

Performance of Other Asset Managers

BlackRock, Inc.’s BLK fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter. Net income attributable to BlackRock (on a GAAP basis) was $1.64 billion, up 6.1% from the prior-year quarter.

BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.

Invesco’s IVZ fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter. On a GAAP basis, Invesco’s net income attributable to common shareholders was $426.8 million or 92 cents per share, up from $211.1 million or 46 cents per share a year ago.

IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.

Ameriprise Financial’s AMP fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter. Ameriprise’s net income (GAAP basis) was $701 million or $5.96 per share, up from $177 million or $1.43 per share in the prior-year quarter.

AMP’s results were aided by growth in revenues, partly offset by higher expenses. Improvements in AUM and assets under administration (AUA) balance were tailwinds.




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