SEI Investments Q3 results beat estimates on on revenue growth, margin expansion

Overview

• Financial technology provider's Q3 revenue rose 14% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q3 grew 24% and beat analyst expectations

• Company increased share repurchase authorization by $800 mln to about $926 mln

Outlook

• SEI anticipates incentive compensation expense to remain elevated based on current outlook

• Company sees strong demand for outsourcing and enterprise transformation services continuing

Result Drivers

• REVENUE GROWTH AND MARGIN EXPANSION - Co said adjusted EPS growth was driven by higher revenue, improved margins, and a lower share count from repurchases

• STRONG SALES EVENTS - Net sales events were near record levels, led by new client wins and expansions in Investment Managers

• PRIVATE BANKS OPERATING LEVERAGE - Private Banks segment saw higher profit growth than revenue, reflecting operating leverage and increased adoption of professional services

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for SEI Investments Company is $125.00, about 16.7% above its October 20 closing price of $107.15

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)