NASDAQ$SEIC

SEI Investments Company · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

SEI's financial results for the second quarter of 2022 were reported.

SEI Investments Company reported financial results for Q2 2022, with diluted earnings per share of $0.81, compared to $0.93 in Q2 2021. The company's revenues reached $481.67 million, a 1% increase from $475.651 million in the same quarter last year. Net income was $111.276 million, a 17% decrease compared to $133.778 million in Q2 2021.

  • Revenues from Information processing and software servicing fees increased due to new client conversions, growth from existing SEI Wealth Platform clients, and the acquisition of SEI Novus.
  • Revenues from Assets under management, administration, and distribution fees were flat, with a decrease in Assets under management offset by increased revenues from assets under administration.
  • Net sales events in the Private Banks and Investment Managers segments during second-quarter 2022 were $7.9 million and are expected to generate net annualized recurring revenues of approximately $5.6 million when contract values are completely realized.
  • The company initiated an enhanced voluntary separation program, expected to cost between $54.0 million and $58.0 million, to be recorded in Q3 2022 results.

Headline financials

Total Revenue

$482M

Previous: $476M+1.3%
EPS (adj)

$0.81

Previous: $0.93-12.9%
Average Assets Under Administration

$898B

Previous: $858B+4.6%
Capital Expenditures

-$19.8M

Previous: -$15.5M-28.1%
Free Cash Flow

$91.5M

Previous: $118M-22.7%
Net Income

$111M

Previous: $134M-16.8%
Operating Income

$116M

Previous: $136M-14.8%
Gross Profit

$140M

Previous: $158M-11.8%
Cash & Equivalents

$772M

Previous: $781M-1.2%
Total Assets

$2.23B

Previous: $2.14B+4.5%

Revenue & EPS history

SEI · Revenue · Quarterly

$482M

Q2 2022+1.3%vs Q2 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

SEI · $482M total across 5 segments · Q2 2022

  • Investment Managers
    $156M+9.2%
  • Private Banks
    $124M+0.4%
  • Investment Advisors
    $113M-5.2%
  • Institutional Investors
    $83.5M-2.6%
  • Investments in New Businesses
    $4.88M+19.9%

Forward guidance

This release contains forward-looking statements that are subject to risks and uncertainties. Actual results could differ from those described in these statements due to various factors outlined in the company's reports filed with the Securities and Exchange Commission.

Tailwinds

  • The extent to which current market conditions will persist
  • Revenue that we believe will be generated by sales events that occurred during the quarter and the timing of the realization of such revenue, if any
  • Whether we will diligently assess and allocate our investments
  • Whether we positioned for growth, and to deliver value to our employees, clients, and shareholders
  • When our enhanced voluntary separation program will close and the amount of the cost of such program

Headwinds

  • The timing and success of client migrations, implementations and conversions
  • Our ability to expand our relationships and revenue opportunities with new and existing clients
  • Whether our investments will create growth opportunities
  • Whether we are positioned for sustainable growth and to take advantage of opportunities
  • The margins that out businesses may generate

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 2022

Historical avgQ2 2022

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro