Published on 25 Apr 2024 on Zacks via Yahoo Finance

SEI Investments (SEIC) Q1 Earnings Beat as Revenues & AUM Rise

SEI Investments Co.’s SEIC first-quarter 2024 earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 97 cents. The bottom line reflects a rise of 25% from the prior-year quarter.Results benefited from higher revenues and an increase in the assets under management (AUM) balance. Higher expenses acted as a headwind.Net income was $131.4 million, up 23% from the year-ago quarter. Our estimate for the metric was $117.8 million.

Revenues & AUM Improve, Expenses Rise

Total revenues were $511.6 million, up 9% year over year. The rise was driven by higher asset management, administration and distribution fees, and information processing and software servicing fees. Also, the top line beat the Zacks Consensus Estimate of $505.4 million.Total expenses were $385.7 million, rising 5% year over year. The increase was due to higher compensation, benefits and other personnel costs; software royalties and other information processing costs; stock-based compensation expenses; amortization costs; and data processing and computer-related costs. Our estimate for expenses was $382.7 million.Operating income increased 24% year over year to $125.9 million. Our estimate for the metric was $107.1 million.As of Mar 31, 2024, AUM was $443.6 billion, reflecting a rise of 8% from the prior-year quarter. Client assets under administration (AUA) were $983.3 billion, up 16% year over year. Client AUA did not include $11.0 billion related to Funds of Funds assets reported as of Mar 31, 2024.