NASDAQ$SEIC

SEI Investments Company · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Solid sales and revenue growth with increasing profitability, driven by strong performance in technology and investment processing businesses.

SEI Investments Company reported second-quarter 2023 financial results with diluted earnings per share of $0.89, compared to $0.81 in second-quarter 2022. The company saw revenue growth and increasing profitability, particularly in its technology and investment processing businesses. Strategic investments in talent, market presence, and resource alignment are expected to drive long-term, sustainable growth.

  • Diluted earnings per share were $0.89 in second-quarter 2023, up from $0.81 in second-quarter 2022.
  • Technology and investment processing businesses delivered strong performance, contributing to top- and bottom-line growth.
  • Net sales events in the Private Banks and Investment Managers segments during second-quarter 2023 were $31.1 million and are expected to generate net annualized recurring revenues of approximately $25.4 million when contract values are completely realized.
  • We repurchased 1.3 million shares of our common stock for $75.5 million during the second-quarter 2023 at an average price of $58.56 per share.

Headline financials

Total Revenue

$489M

Previous: $482M+1.5%
EPS (adj)

$0.89

Previous: $0.81+9.9%
Effective Tax Rate

23.4%

No prior period
Capital Expenditures

-$16.5M

Previous: -$19.8M+16.9%
Free Cash Flow

$102M

Previous: $91.5M+11.9%
Net Income

$119M

Previous: $111M+6.8%
Operating Income

$113M

Previous: $116M-2.8%
Gross Profit

$145M

Previous: $140M+3.8%
Cash & Equivalents

$777M

Previous: $772M+0.7%
Total Assets

$2.32B

Previous: $2.23B+4.0%

Revenue & EPS history

SEI · Revenue · Quarterly

$489M

Q2 2023+1.5%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

SEI · $489M total across 5 segments · Q2 2023

  • Investment Managers
    $165M+6.0%
  • Private Banks
    $134M+8.0%
  • Investment Advisors
    $110M-3.2%
  • Institutional Investors
    $75.1M-10.0%
  • Investments in New Businesses
    $4.89M+0.2%

Forward guidance

This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change.

Tailwinds

  • when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, as well as the amount of such revenue
  • the duration of our customer relationships
  • whether we will make prudent, strategic investments to drive long-term, sustainable growth for our stakeholders
  • the elements of our strategic focus
  • our sales momentum

Headwinds

  • You should not place undue reliance on our forward-looking statements
  • they are based on the current beliefs and expectations of our management
  • subject to significant risks and uncertainties
  • many of which are beyond our control
  • are subject to change

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 2023

Historical avgQ2 2023

-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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