NASDAQ$SEIC

SEI Investments Company · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced financial results with diluted earnings per share of $0.91 compared to $0.83 in Q4 2022.

SEI Investments Company reported solid growth and core profitability in Q4 2023, with diluted earnings per share increasing to $0.91 from $0.83 in the same quarter of the previous year. The company's results reflect strong sales activity, particularly in technology, investment processing, and operations segments.

  • 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 $5.0 billion to $167.4 billion.
  • Average assets under administration increased by $133.5 billion to $923.4 billion.
  • Net sales events in the Private Banks and Investment Managers segments during the fourth-quarter 2023 were $22.9 million and are expected to generate net annualized recurring revenues of approximately $17.6 million when contract values are completely realized.

Headline financials

Total Revenue

$485M

Previous: $457M+6.2%
EPS (adj)

$0.91

Previous: $0.83+9.6%
Shares Repurchased

1.2M

No prior period
Average Assets Under Administration

$923B

No prior period
Capital Expenditures

$1.72M

Previous: $6.87M-75.0%
Net Income

$121M

Previous: $112M+7.6%
Operating Income

$102M

Previous: $94M+8.1%
Gross Profit

$245M

Previous: $229M+7.0%

Revenue & EPS history

SEI · Revenue · Quarterly

$485M

Q4 2023+6.2%vs Q4 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 company is positioned to capitalize on trends shaping markets and deliver long-term sustainable growth. Strategic initiatives in the Advisor business are expected to drive new client adoption and exploit opportunities in the intermediary market.

Tailwinds

  • Private Banking and Investment Manager Services business units are well positioned to continue to expand and contribute to top and bottom lines.
  • Strategic initiatives in the Advisor business will help with new client adoption and exploit the opportunity in the intermediary market.
  • The company is well-positioned for 2024 and beyond.
  • Focus on key clients in the alternatives space and the cross sale opportunities that this focus may generate.
  • Expansion opportunities for the turn-key Collective Investment Trust solution.

Headwinds

  • Headwinds our businesses face and our ability to respond to these headwinds.
  • Ability to capitalize on our pipeline and opportunities, manage expenses, and drive profit to the bottom line.
  • Market dynamics affecting our market units.
  • Ability to improve profitability without cannibalizing our medium to long-term growth agendas.
  • The amount, if any, of our current backlog of sold but expected to be installed revenue and recurring revenue in the next 18 months that will actually be installed during such period, if ever.

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 2023

Historical avgQ4 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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