NASDAQ$SEIC

SEI Investments Company · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

SEI reported steady recovery from the pandemic’s impact and executed its long-term strategy.

SEI Investments Company announced its Q4 2020 financial results, with diluted earnings per share of $0.86 compared to $0.84 in Q4 2019. The company's investments and success in adding new clients have positioned it well for future growth.

  • Sales events in Q4 2020 totaled approximately $8.8 million and are expected to generate net annualized recurring revenues of approximately $4.9 million.
  • Average assets under administration increased by $108.2 billion, or 16%, to $779.7 billion in Q4 2020.
  • Average assets under management, excluding LSV, increased by $21.2 billion, or 9%, to $260.4 billion in Q4 2020.
  • The company repurchased 1.8 million shares of its common stock for $99.1 million during the fourth quarter 2020 at an average price of $54.36 per share.

Headline financials

Total Revenue

$444M

Previous: $423M+4.8%
EPS (adj)

$0.86

Previous: $0.84+2.4%
Shares Repurchased

1.8M

Previous: 1.3M+38.5%
Average Assets Under Administration

$780B

Previous: $672B+16.1%
Capital Expenditures

$11.3M

Previous: $12.6M-9.9%
Free Cash Flow

$80.8M

Previous: $151M-46.5%
Net Income

$126M

Previous: $129M-2.2%
Operating Income

$124M

Previous: $116M+6.8%
Gross Profit

$254M

Previous: $238M+6.4%
Cash & Equivalents

$785M

Previous: $841M-6.8%
Total Assets

$2.17B

Previous: $2.15B+0.7%

Revenue & EPS history

SEI · Revenue · Quarterly

$444M

Q4 2020+4.8%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

SEI · $444M total across 5 segments · Q4 2020

  • Investment Managers
    $130M+13.0%
  • Private Banks
    $120M+0.8%
  • Investment Advisors
    $108M+2.3%
  • Institutional Investors
    $82.3M+2.3%
  • Investments in New Businesses
    $3.76M+9.7%

Forward guidance

The company's forward-looking statements include expectations as to revenue generation from sales events, the rebound of business, strategic priorities, and the ability to capture growth opportunities and increase shareholder value.

Tailwinds

  • Revenue will be generated by sales events that occurred during the quarter.
  • The business will rebound.
  • Strategic priorities will be executed.
  • Solutions position the company to capture growth opportunities.
  • Shareholder value will increase.

Headwinds

  • The timing and success of client implementations and conversions may vary.
  • The ability to expand relationships and revenue opportunities with new and existing clients is uncertain.
  • The ability to leverage technologies and scale businesses may be limited.
  • The repetition of one-time and transaction-based revenues during the quarter is not guaranteed.
  • The success of strategic investments is subject to risks.

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 2020

Historical avgQ4 2020

-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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