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OAKS, Pa. - SEI Investments Company (NASDAQ:SEIC) reported second-quarter earnings that significantly exceeded analyst expectations, with EPS of $1.78 beating estimates by $0.59, while revenue came in slightly below forecasts at $559.6 million versus the expected $562.02 million.
The substantial earnings beat was largely driven by a $94.4 million gain from the sale of SEI’s Family Office Services business, which contributed $0.60 to the quarterly EPS. The company also benefited from a settlement gain from resolving a long-standing vendor negotiation.
SEI’s second-quarter EPS surged 70% compared to the same period last year, while revenue increased 8% YoY to $559.6 million. Operating income grew 9% to $148.6 million, with operating margin improving to 27% from 26% in the prior-year quarter.
"SEI achieved another strong quarter across our core businesses. We are executing with conviction and discipline, positioning the company for sustained growth," said CEO Ryan Hicke. "We are making intentional investments in our talent, technology, and infrastructure to enhance our capabilities and scale."
The company reported $29.2 million in net sales events during the quarter, bringing trailing 12-month sales events to a record $160.4 million. The Investment Managers segment was particularly strong, with operating profit up 7% YoY, driven by double-digit growth in alternative manager revenue.
Investment Advisors saw the strongest performance with operating profit jumping 19%, reflecting a $21 million contribution from SEI’s integrated cash program, up $11 million from Q2 2024.
During the quarter, SEI repurchased 2.2 million shares of common stock for $180.8 million at an average price of $83.60 per share.
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