NASDAQ$SEIC

SEI Investments Company · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

SEI reported financial results for the fourth quarter of 2019, with diluted earnings per share of $0.84 compared to $0.73 in the same quarter of 2018.

SEI Investments Company reported a 4% increase in revenues and an 11% increase in net income for Q4 2019 compared to Q4 2018. Diluted earnings per share increased to $0.84 from $0.73 year-over-year.

  • Revenues from asset management, administration, and distribution fees increased primarily from higher assets under administration in the Investment Managers segment due to sales of new business and market appreciation.
  • Average assets under administration increased by $88.8 billion, or 15%, to $671.5 billion in Q4 2019 compared to $582.7 billion in Q4 2018.
  • Average assets under management, excluding LSV, increased by $20.8 billion, or 10%, to $239.2 billion in Q4 2019 compared to $218.4 billion in Q4 2018.
  • Earnings from LSV increased by $2.7 million, or 8%, to $39.1 million in Q4 2019 compared to $36.4 million in Q4 2018, driven by higher assets under management from market appreciation.

Headline financials

Total Revenue

$423M

Previous: $405M+4.5%
EPS (adj)

$0.84

Previous: $0.73+15.1%
Shares Repurchased

1.3M

No prior period
Average Assets Under Administration

$672B

Previous: $583B+15.2%
Average AUM (Excluding LSV)

$239B

Previous: $218B+9.5%
Average AUM from LSV

$39.1M

Previous: $36.4M+7.4%
Effective Tax Rate

19.5%

Previous: 19.2%+1.6%
Capital Expenditures

$12.6M

Previous: $7.44M+69.0%
Free Cash Flow

$151M

Previous: $163M-7.4%
Net Income

$129M

Previous: $116M+10.9%
Operating Income

$116M

Previous: $103M+12.8%
Gross Profit

$238M

Previous: $220M+8.3%
Cash & Equivalents

$841M

Previous: $755M+11.5%
Total Assets

$2.15B

Previous: $1.97B+9.1%

Revenue & EPS history

SEI · Revenue · Quarterly

$423M

Q4 2019+4.5%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

SEI · $423M total across 5 segments · Q4 2019

  • Private Banks
    $119M-2.2%
  • Investment Managers
    $115M+12.1%
  • Investment Advisors
    $106M+8.6%
  • Institutional Investors
    $80.5M-0.5%
  • Investments in New Businesses
    $3.43M+16.0%

Forward guidance

SEI's forward-looking statements include current expectations regarding revenue generation from sales events, business growth, the company's position in financial technology, and the potential for increased shareholder value.

Tailwinds

  • Revenue will be generated by sales events that occurred during the quarter.
  • The growth and momentum of our businesses will continue.
  • Our unique position across financial technology, operations and investments provide growth opportunities.
  • Our investments will position us to take advantage of market opportunities.
  • Our current initiatives will create growth opportunities that will lead to increased shareholder value.

Headwinds

  • Forward-looking statements are based on current beliefs and expectations of management.
  • These statements are subject to significant risks and uncertainties.
  • Many factors are beyond our control or are subject to change.
  • The assumptions upon which we base our forward-looking statements could be inaccurate.
  • Actual results could differ from those described in our forward-looking statements.

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 Q4 2019

Historical avgQ4 2019

-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