NASDAQ$SEIC

SEI Investments Company · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported positive financial results driven by market performance and strategic investments.

SEI Investments Company reported a strong third quarter with diluted earnings per share of $0.97, compared to $0.75 in the third quarter of 2020. Revenues increased by 14% to $485.322 million, and net income increased by 24% to $138.045 million. The company's performance reflects positive markets, continued sales momentum, and strategic investments in its business and workforce.

  • Revenues increased due to higher assets under management and administration, driven by market appreciation and positive cash flows.
  • Average assets under administration increased by $116.9 billion, or 16%, to $855.7 billion.
  • Average assets under management, excluding LSV, increased by $53.9 billion, or 22%, to $300.0 billion.
  • Net sales events in the Private Banks and Investment Managers segments are expected to generate approximately $15.1 million in net annualized recurring revenues.

Headline financials

Total Revenue

$485M

Previous: $425M+14.2%
EPS (adj)

$0.97

Previous: $0.75+29.3%
Average Assets Under Administration

$856B

Previous: $739B+15.8%
Average AUM (Excluding LSV)

$300B

Previous: $246B+21.9%
Average AUM from LSV

$35M

Previous: $28.3M+23.7%
Capital Expenditures

-$22.5M

Previous: -$43.1M+47.8%
Free Cash Flow

$116M

Previous: $68M+69.9%
Net Income

$138M

Previous: $111M+24.3%
Operating Income

$141M

Previous: $111M+26.8%
Gross Profit

$162M

Previous: $129M+25.6%
Cash & Equivalents

$794M

Previous: $768M+3.4%
Total Assets

$2.19B

Previous: $2.09B+5.1%

Revenue & EPS history

SEI · Revenue · Quarterly

$485M

Q3 2021+14.2%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

SEI · $485M total across 5 segments · Q3 2021

  • Investment Managers
    $147M+19.0%
  • Investment Advisors
    $125M+20.9%
  • Private Banks
    $123M+7.2%
  • Institutional Investors
    $85.8M+7.8%
  • Investments in New Businesses
    $4.37M+24.1%

Forward guidance

The release contains forward-looking statements regarding revenue generation from sales events, strategic investments, and the ability to capitalize on market opportunities. These statements are based on current beliefs and expectations but are subject to risks and uncertainties.

Tailwinds

  • Revenue will be generated by sales events that occurred during the quarter and the timing of such realization
  • Company will have sales momentum
  • Company will invest in our business, solutions, or workforce
  • Company will be able to capture the opportunities inherent in significant change
  • Company will be able to expand our relationships and revenue opportunities with new and existing clients

Headwinds

  • Timing and success of client migrations, implementations and conversions
  • Company may not be able to take advantage of increasing sales demand
  • The timing of and our ability to integrate acquisition targets and the benefits we will receive from any of our acquisitions
  • The degree to which M&A activity in the industries in which we compete will affect our sales
  • The degree to which our technology is being adopted across both our existing client base and new clients

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 Q3 2021

Historical avgQ3 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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