NASDAQ$SEIC

SEI Investments Company · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Announced third-quarter 2023 financial results, demonstrating revenue growth and strong profitability.

SEI reported a positive third quarter with diluted earnings per share of $0.87, compared to $0.45 in the same quarter of the previous year. The company saw revenue increase by 1% to $476.759 million. This growth was driven by positive sales activity in operational and processing businesses and strong profitability.

  • Revenues from assets under management, administration, and distribution fees increased due to higher assets under management and administration.
  • Average assets under management in equity and fixed income programs, excluding LSV, increased by $3.9 billion, or 2%, to $170.3 billion.
  • Average assets under administration increased by $107.1 billion, or 14%, to $893.7 billion.
  • Net sales events in the Private Banks and Investment Managers segments were $22.3 million, expected to generate net annualized recurring revenues of approximately $19.0 million.

Headline financials

Total Revenue

$477M

Previous: $471M+1.2%
EPS (adj)

$0.87

Previous: $0.77+13.0%
Average Assets Under Administration

$894B

Previous: $787B+13.6%
Average AUM from LSV

$29.9M

Previous: $26.7M+12.0%
Capital Expenditures

-$23.1M

Previous: -$32.3M+28.5%
Free Cash Flow

$92.5M

Previous: $29.3M+215.4%
Net Income

$116M

Previous: $61.7M+87.6%
Operating Income

$108M

Previous: $51M+112.5%
Gross Profit

$139M

Previous: $141M-0.8%
Cash & Equivalents

$854M

Previous: $791M+8.0%
Total Assets

$2.4B

Previous: $2.3B+4.4%

Revenue & EPS history

SEI · Revenue · Quarterly

$477M

Q3 2023+1.2%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

SEI · $477M total across 5 segments · Q3 2023

  • Investment Managers
    $169M+8.5%
  • Private Banks
    $121M-1.0%
  • Investment Advisors
    $110M+0.8%
  • Institutional Investors
    $70.5M-9.9%
  • Investments in New Businesses
    $5.06M+4.6%

Forward guidance

The release contains forward-looking statements regarding the company's expectations for sales activity, profitability, expense management, investments, and long-term growth.

Tailwinds

  • Nature of sales activity and profitability in technology, operational, and processing businesses.
  • Initiatives on which the company will focus.
  • Ability to manage expenses.
  • Ability to capitalize on opportunities.
  • Degree to which the company will deliver long-term growth for stakeholders.

Headwinds

  • Significant risks and uncertainties that are beyond the company's control or are subject to change.
  • Assumptions upon which forward-looking statements are based could be inaccurate.
  • Factors that could cause actual results to differ from those described in forward-looking statements can be found in the company's report on Form 10-K.
  • Ability to generate net annualized recurring revenues from sales events that occurred during the quarter.
  • The duration of customer relationships.

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 2023

Historical avgQ3 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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