SEI Investments Q3 results beat estimates on revenue growth, margin expansion
SEIC•SEI Investments reported Q3 revenue of $662.04 million, up 14% year over year, and adjusted EPS of $1.64, beating analyst estimates. The company increased its share repurchase authorization by $800 million to about $926 million.
1. Quarterly results
Q3 revenue rose 14% year over year to $662.04 million, slightly above the $657 million analyst consensus. Adjusted EPS increased 24% to $1.64, beating the $1.56 consensus; reported EPS was $1.38.
2. Repurchases and outlook
The company increased its share repurchase authorization by $800 million to about $926 million. SEI anticipates incentive compensation expense will remain elevated based on its current outlook and sees strong demand for outsourcing and enterprise transformation services continuing.
3. Business trends
SEI said adjusted EPS growth reflected higher revenue, improved margins and a lower share count from repurchases. Net sales events were near record levels, led by new client wins and expansions in Investment Managers; Private Banks saw profit grow faster than revenue, reflecting operating leverage and increased adoption of professional services.
