SEI Investments (SEIC) Q1 Earnings Meeting, Revenue Rise – April 21, 2022

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SEI Investments Co.it is (CEIU Free Report) first-quarter 2022 earnings of $1.36 per share were in line with Zacks’ consensus estimate. Net income reflects a jump of 53% over the prior year quarter.

The reported quarter included a one-time early termination fee of $88 million or 47 cents per share, which was included in the information processing and software service fee. Excluding that, earnings per share would have been 89 cents in the first quarter.

Results were helped by revenue growth and an increase in assets under management (AUM). These were compensated by an increase in expenditure.

Net income was $190.3 million, up 47% from the prior year quarter.

Income, expenses and increase in AUM

Total revenue was $581.4 million, up 28% year over year. The increase reflects an increase in asset management, administration and distribution fees as well as information processing and software services fees. The top line beat Zacks’ consensus estimate of $558.1 million.

Total expenditures amounted to $366.6 million, up 14%. This increase is due to an increase in all cost components, with the exception of depreciation charges.

Operating profit jumped 62% to $214.8 million.

As of March 31, 2022, assets under management were $385.3 billion, reflecting a slight increase from the prior year quarter. Client assets under administration (AUA) were $899.6 billion, up 8%. The client’s AAU does not include the $13.3 billion related to fund-of-funds assets reported on March 31, 2022.

Share buyback update

During the current quarter, SEI Investments repurchased 1.7 million shares for $100.1 million.

Conclusion

Lately, SEIC has embarked on a wave of acquisitions, which should significantly improve its market share and revenue. Its strong balance under management, global presence and diverse range of product offerings should continue to drive growth. Additionally, the company’s technology innovation and growing demand for the SEI Wealth Management Platform across multiple financial institutions will continue to support financials.

Currently, SEI Investments carries a Zacks rank #2 (buy). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Date of performance and earnings of other asset managers

BlackRock, Inc.it is (noir Free Report) first-quarter 2022 adjusted earnings of $9.52 per share beat Zacks’ consensus estimate of $8.92. This figure reflects an increase of 18.4% over the prior year quarter.

BlackRock’s results benefited from improved revenue, partially offset by higher expenses. In addition, long-term net inflows supported growth in the balance of assets under management (AUM), which was a major positive.

Invesco Ltd. (IVZ Free Report) is expected to release quarterly numbers on April 26.

Over the past 30 days, the Zacks consensus estimate for Invesco’s quarterly earnings fell 7.2% to 64 cents. This suggests a decline of 5.8% from the prior year quarter.

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