NASDAQ$SEIC

SEI Investments Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported positive markets, improving sales momentum and solid capital returns to shareholders.

SEI Investments Company announced financial results for the second-quarter 2021, with diluted earnings per share of $0.93 compared to $0.68 in the second-quarter of 2020. The company continues to invest in technology and solutions to deliver products and services to clients.

  • Revenues from Asset management, administration, and distribution fees increased primarily from higher assets under administration in our Investment Managers segment due to market appreciation and positive cash flows from new and existing clients.
  • Average assets under administration increased $185.4 billion, or 28%, to $858.2 billion in the second-quarter 2021, as compared to $672.8 billion during the second-quarter 2020.
  • Average assets under management, excluding LSV, increased $66.6 billion, or 29%, to $293.4 billion in the second-quarter 2021, as compared to $226.8 billion during the second-quarter 2020 primarily due to market appreciation.
  • Cash flow from operations was $188.4 million, or $1.31 per share, and free cash flow was $171.3 million during the second-quarter 2021.

Headline financials

Total Revenue

$476M

Previous: $401M+18.7%
EPS (adj)

$0.93

Previous: $0.68+36.8%
Average Assets Under Administration

$858B

Previous: $673B+27.6%
Average AUM (Excluding LSV)

$293B

Previous: $227B+29.4%
Average AUM from LSV

$35.1M

Previous: $28.3M+24.0%
Capital Expenditures

-$15.5M

Previous: -$34.4M+55.1%
Free Cash Flow

$118M

Previous: $66.6M+77.6%
Net Income

$134M

Previous: $101M+32.4%
Operating Income

$136M

Previous: $100M+35.6%
Gross Profit

$158M

Previous: $118M+34.5%
Cash & Equivalents

$781M

Previous: $758M+3.0%
Total Assets

$2.14B

Previous: $2.05B+4.2%

Revenue & EPS history

SEI · Revenue · Quarterly

$476M

Q2 2021+18.7%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

SEI · $476M total across 5 segments · Q2 2021

  • Investment Managers
    $143M
  • Private Banks
    $124M
  • Investment Advisors
    $119M
  • Institutional Investors
    $85.7M
  • Investments in New Businesses
    $4.07M

Forward guidance

The release contains forward-looking statements regarding revenue generation from sales events, sales momentum, investment in solutions, strategic priorities, and long-term success.

Tailwinds

  • revenue that we believe will be generated by sales events that occurred during the quarter and the timing of such realization
  • whether we will have sales momentum
  • whether we will be able to take advantage of increasing sales demand
  • whether we will invest in the strength and expansion of our solutions
  • our strategic priorities and commitments and the degree to which we will execute on them

Headwinds

  • our ability to capture the opportunities inherent in significant change
  • the timing and success of client migrations, implementations and conversions
  • our ability to expand our relationships and revenue opportunities with new and existing clients
  • the timing of and our ability to integrate acquisition targets
  • the degree to which M&A activity in the industries in which we compete will affect our sales

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 Q2 2021

Historical avgQ2 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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