SEI Investments Whiffs on Earnings
SEI Investments (NAS: SEIC) reported earnings on Jan. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SEI Investments missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and earnings per share contracted significantly.
Margins contracted across the board.
SEI Investments booked revenue of $226.2 million. The four analysts polled by S&P Capital IQ expected net sales of $235.8 million. Sales were 2.2% lower than the prior-year quarter's $231.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.25. The three earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.25 for Q4 were 24% lower than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 38.7%, 350 basis points worse than the prior-year quarter. Operating margin was 19.6%, 280 basis points worse than the prior-year quarter. Net margin was 19.6%, 740 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $249.5 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $1.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 232 members out of 246 rating the stock outperform, and 14 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give SEI Investments a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SEI Investments is outperform, with an average price target of $23.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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