Shares of SEI Investments Co. SEIC gained 1% in the after-market trading session on better-than-expected third-quarter 2024 results. Its earnings per share (EPS) of $1.19 surpassed the Zacks Consensus Estimate of $1.07. The bottom line reflected a rise of 36.8% from the prior-year quarter's level.

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Results benefited from higher revenues and an increase in the assets under management (AUM) balance. Higher expenses acted as a headwind.

Net income was $154.9 million, up 33.9% from the year-ago quarter's level. Our estimate for the metric was $136.5 million.

SEIC’s Revenues & AUM Improve, Expenses Rise

Total revenues were $537.4 million, up 12.7% 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 $533.2 million.

Total expenses were $393.6 million, up 6.9% year over year. The increase was driven by all the components except consulting, outsourcing and professional fees charges, and depreciation charges. Our estimate for the metric was $393.7 million.

Operating income increased 32.6% year over year to $143.8 million. Our estimate for the metric was $132.3 million.

As of Sept. 30, 2024, AUM was $493.3 billion, reflecting a rise of 21.4% from the prior-year quarter's reported actuals. Client assets under administration (AUA) were $1.05 trillion, up 17.4% year over year. Client AUA did not include $8.5 billion related to Funds of Funds assets reported as of Sept. 30, 2024.

SEI Investments’ Share Repurchase Update

In the reported quarter, SEI Investments bought back 1.3 million shares for $85.8 million.

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

Performance of Other Asset Managers

Invesco’s IVZ third-quarter 2024 adjusted earnings of 44 cents per share came in line with the Zacks Consensus Estimate. The bottom line increased 25.7% 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 third-quarter 2024 adjusted earnings of $11.46 per share handily surpassed the Zacks Consensus Estimate of $10.34. The figure reflected a rise of 5% from the year-ago quarter.

BLK’s results benefited from a rise in revenues and higher non-operating income. AUM witnessed robust growth and touched the $11.45 trillion mark, driven by net inflows and market appreciation. However, higher expenses acted as a headwind.

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