NASDAQ$SEIC

SEI Investments Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

SEI's financial performance for Q4 2021 reflected continued sales momentum, success in delivering solutions, and positive capital markets.

SEI Investments Company reported diluted earnings per share of $1.03 for the fourth quarter of 2021, compared to $0.86 for the fourth quarter of 2020. The company's record financial results for 2021 reflect continued sales momentum, success in delivering solutions to its markets, and positive capital markets.

  • Revenues from asset management, administration, and distribution fees increased due to higher assets under management and administration from market appreciation and positive cash flows.
  • Net sales events in the Private Banks and Investment Managers segments during Q4 2021 are expected to generate net annualized recurring revenues of approximately $22.1 million when contract values are completely realized.
  • The company acquired Novus Partners in November 2021, with its results included in the Institutional Investors segment, negatively impacting the segment's Q4 2021 results by approximately $868 thousand.
  • During the quarter, SEI repurchased 1.5 million shares of its common stock for $95.5 million at an average price of $62.44 per share.

Headline financials

Total Revenue

$502M

Previous: $444M+13.1%
EPS (adj)

$1.03

Previous: $0.86+19.8%
Average Assets Under Administration

$884B

Previous: $780B+13.4%
Capital Expenditures

$3.98M

Previous: $11.3M-64.9%
Free Cash Flow

$139M

Previous: $80.8M+71.6%
Net Income

$145M

Previous: $126M+15.4%
Operating Income

$143M

Previous: $124M+15.6%
Gross Profit

$283M

Previous: $254M+11.4%
Cash & Equivalents

$825M

Previous: $785M+5.2%
Total Assets

$2.35B

Previous: $2.17B+8.6%

Revenue & EPS history

SEI · Revenue · Quarterly

$502M

Q4 2021+13.1%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

SEI · $502M total across 5 segments · Q4 2021

  • Investment Managers
    $155M+19.2%
  • Private Banks
    $129M+8.0%
  • Investment Advisors
    $125M+15.8%
  • Institutional Investors
    $87.8M+6.7%
  • Investments in New Businesses
    $4.53M+20.4%

Forward guidance

SEI anticipates continued growth and strategic execution.

Tailwinds

  • Revenue will be generated by sales events that occurred during the quarter and the timing of the realization of such revenue.
  • Whether we will have sales momentum
  • The effect of our acquisitions on our capabilities, competitive position and growth opportunities
  • Our strategic priorities and commitments and the degree to which we will execute on them
  • The degree to which we are well-positioned to seize growth opportunities that will lead to increased shareholder value.

Headwinds

  • The timing and success of client migrations, implementations and conversions
  • Our ability to expand our relationships and revenue opportunities with new and existing clients
  • Whether we will be able to take advantage of increasing sales demand
  • The timing of and our ability to integrate acquisition targets and the potential benefits we may derive from any of our acquisitions
  • The degree to which M&A activity in the industries in which we compete will affect our sales

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 2021

Historical avgQ4 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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