NASDAQ$SEIC

SEI Investments Company · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

SEI's financial performance for Q1 2021 reflected positive capital market performance and strategic investments.

SEI reported a strong first quarter in 2021, with diluted earnings per share of $0.89, a 24% increase compared to $0.72 in the first quarter of 2020. Revenue increased by 10% to $455.686 million, and net income rose by 19% to $129.470 million. The company saw solid sales results in processing and operational services, offsetting headwinds in asset management businesses.

  • Asset management, administration, and distribution fees increased due to higher assets under administration in the Investment Managers segment, driven by market appreciation and positive cash flows.
  • Average assets under administration increased by $142.4 billion, or 21%, to $821.6 billion in the first quarter of 2021 compared to $679.2 billion in the first quarter of 2020.
  • Average assets under management, excluding LSV, increased by $43.2 billion, or 18%, to $280.4 billion in the first quarter of 2021 compared to $237.2 billion in the first quarter of 2020.
  • Net sales events in the Private Banks and Investment Managers segments during the first quarter of 2021 were $17.5 million, expected to generate approximately $13.0 million in net annualized recurring revenues.

Headline financials

Total Revenue

$456M

Previous: $415M+9.9%
EPS (adj)

$0.89

Previous: $0.72+23.6%
Average Assets Under Administration

$822B

Previous: $679B+21.0%
Capital Expenditures

-$4.22M

Previous: -$20.7M+79.6%
Free Cash Flow

$125M

Previous: $88.6M+41.4%
Net Income

$129M

Previous: $109M+18.5%
Operating Income

$133M

Previous: $110M+20.5%
Gross Profit

$154M

Previous: $128M+20.4%
Cash & Equivalents

$783M

Previous: $747M+4.8%
Total Assets

$2.15B

Previous: $2.06B+4.5%

Revenue & EPS history

SEI · Revenue · Quarterly

$456M

Q1 2021+9.9%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

SEI · $456M total across 5 segments · Q1 2021

  • Investment Managers
    $136M+17.0%
  • Private Banks
    $118M+3.9%
  • Investment Advisors
    $113M+10.7%
  • Institutional Investors
    $84.5M+6.7%
  • Investments in New Businesses
    $3.87M+14.1%

Forward guidance

The release contains forward-looking statements regarding revenue generation from sales events, investments in solutions, strategic priorities, and elements of long-term success. It also anticipates statements about capturing opportunities, client implementations, expanding relationships, leveraging technologies, managing expenses, and the success of strategic investments.

Tailwinds

  • Revenue will be generated by sales events that occurred during the quarter
  • Company will invest in the strength and expansion of our solutions
  • Strategic priorities and the degree to which we will execute on them
  • Elements of our long-term success
  • Degree to which our business will be successful and the beneficiaries of any such success

Headwinds

  • Ability to capture the opportunities inherent in significant change
  • Timing and success of client implementations and conversions
  • Ability to expand our relationships and revenue opportunities with new and existing clients
  • Ability to leverage our technologies and scale our businesses
  • Degree to which one-time and transaction-based revenues during the quarter will be repeated

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.3%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.3%

Avg return

30 days after

54%

37 / 69 earnings

Positive

+10.9%

Q2 2014

Best reaction

-17.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+7.9%+6.8%
Q4 2025+2.3%-2.3%-5.6%
Q3 2025-0.0%+0.5%-1.7%
Q2 2025-0.7%-0.5%-2.6%
Q1 2025+7.8%+6.9%+15.0%
Q4 2024+3.7%+3.8%-3.5%
Q3 2024+4.6%+6.6%+13.6%
Q2 2024-2.4%-0.9%-0.5%
Q1 2024-0.8%-0.7%+1.8%
Q4 2023+3.2%+2.5%+5.6%
Q3 2023-3.0%-1.8%+6.3%
Q2 2023-2.3%-1.5%-4.1%
Q1 2023-1.7%-2.5%-2.5%
Q4 2022-1.1%-1.4%-4.5%
Q3 2022+7.5%+10.8%+27.7%
Q2 2022+1.6%+0.4%+6.8%
Q1 2022-3.5%-3.8%-6.9%
Q4 2021-3.6%+1.3%+1.6%
Q3 2021+1.7%+2.4%+1.5%
Q2 2021-2.5%-2.2%-1.3%
Q1 2021-10.5%-5.5%+0.5%
Q4 2020-7.5%-6.1%-3.9%
Q3 2020-8.5%-11.6%-4.2%
Q2 2020-8.4%-9.1%-11.3%
Q1 2020-0.5%+3.9%+4.6%
Q4 2019+5.8%+6.3%-13.8%
Q3 2019+3.9%+4.5%+9.7%
Q2 2019+3.3%+4.6%-4.1%
Q1 2019-7.3%-5.3%-9.5%
Q4 2018-2.4%+1.9%+8.6%
Q3 2018-5.0%+0.5%-1.2%
Q2 2018-5.9%-6.1%-6.7%
Q1 2018-8.8%-9.0%-6.3%
Q4 2017+0.2%-5.2%-2.5%
Q3 2017+2.2%+1.0%+7.8%
Q2 2017-3.0%-1.2%-0.1%
Q1 2017-2.1%-2.2%-4.0%
Q4 2016-3.2%-4.1%+0.0%
Q3 2016+1.6%+0.8%+6.5%
Q2 2016-11.4%-11.2%-10.0%
Q1 2016+4.5%
Q4 2015-17.1%
Q3 2015-1.6%
Q2 2015+5.9%
Q1 2015+2.1%
Q4 2014+1.2%
Q3 2014+3.0%
Q2 2014+10.9%
Q1 2014+2.3%
Q4 2013+2.1%
Q3 2013+3.1%
Q2 2013+3.2%
Q1 2013-3.0%
Q4 2012-0.3%
Q3 2012-1.0%
Q2 2012+1.6%
Q1 2012+1.8%
Q4 2011+0.3%
Q4 2008+0.3%
Q3 2011+3.6%
Q2 2011-7.4%
Q1 2010-0.4%
Q1 2011+1.6%
Q4 2010+2.3%
Q3 2010+2.4%
Q3 2009+2.4%
Q2 2010+1.0%
Q2 2009+1.0%
Q4 2009+1.0%

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