SEI Investments Co.’s SEIC fourth-quarter 2024 earnings per share (EPS) of $1.19 lagged the Zacks Consensus Estimate by a penny. Nonetheless, the bottom line reflected a rise of 30.8% from the prior-year quarter's level.

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Results were affected by higher expenses. Nevertheless, higher revenues and a rise in assets under management (AUM) were tailwinds.

Net income was $155.8 million, up 29% from the year-ago quarter's level. Our estimate for the metric was $151.3 million.

For 2024, earnings per share of $4.41 missed the Zacks Consensus Estimate by a penny. Nonetheless, the metric rose 27.5% year over year. Net income increased 25.7% to $581.2 million.

SEIC’s Revenues & AUM Improve, Expenses Rise

Total revenues were $557.2 million, up 14.9% year over year. The rise was driven by higher asset management, administration, and distribution fees, as well as information processing and software servicing fees. Moreover, the top line surpassed the Zacks Consensus Estimate of $553.9 million.

In 2024, total revenues increased 10.7% to $2.13 billion. Further, the top line beat the Zacks Consensus Estimate of $2.12 billion.

Total expenses were $411.6 million, up 7.4% year over year. The increase was driven by all the components except consulting, outsourcing and professional fees charges, facilities, supplies and other costs and depreciation charges. Our estimate for the metric was $404.8 million.

Operating income increased 43.1% year over year to $145.5 million. Our estimate for the metric was $145.6 million.

As of Dec. 31, 2024, AUM was $476.7 billion, reflecting a rise of 10.4% from the prior-year quarter's reported actuals. Client assets under administration (AUA) were $1.06 trillion, up 12% year over year. Client AUA did not include $10.3 billion related to Funds of Funds assets reported as of Dec. 31, 2024.

SEI Investments’ Share Repurchase Update

In the reported quarter, SEI Investments bought back 3.1 million shares for $259.5 million at an average price of $83.43 per share.

Our View on SEIC

The company’s global presence, diverse product offerings, solid balance sheet, strategic acquisitions, and robust AUM balance are expected to support the top line. Further, the company’s technological innovations are likely to aid financials. However, elevated expenses and significant exposure to fee-based revenues are headwinds.

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.

Performance of Other Asset Managers

Invesco’s IVZ fourth-quarter 2024 adjusted earnings of 52 cents per share surpassed the Zacks Consensus Estimate of 49 cents. Moreover, the bottom line increased 10.6% from the prior-year quarter.

IVZ’s results were primarily aided by a decline in adjusted expenses and higher adjusted net revenues. An increase in the AUM balance on decent inflows was a positive too.
 
BlackRock’s BLK fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.

BLK’s results benefited from a rise in revenues. AUM witnessed robust growth and touched the $11.55 trillion mark driven by net inflows, partially offset by market depreciation and negative forex impact. However, higher expenses and lower non-operating income acted as headwinds.

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