SEI Investments Meets on the Top Line, Misses Where it Counts
SEI Investments (NAS: SEIC) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), SEI Investments met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased. GAAP earnings per share increased significantly.
Gross margins grew, operating margins shrank, net margins grew.
SEI Investments booked revenue of $274.6 million. The five analysts polled by S&P Capital IQ expected revenue of $274.9 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $241.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.31. The five earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. Non-GAAP EPS of $0.31 for Q2 were 11% higher than the prior-year quarter's $0.28 per share. GAAP EPS of $0.47 for Q2 were 68% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 73.9%, 30 basis points better than the prior-year quarter. Operating margin was 21.1%, 120 basis points worse than the prior-year quarter. Net margin was 30.4%, 990 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $279.3 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $1.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 239 rating the stock outperform, and 16 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give SEI Investments a green thumbs-up, and one 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 $31.00.
Looking for alternatives to SEI Investments? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
Add SEI Investments to My Watchlist.
The article SEI Investments Meets on the Top Line, Misses Where it Counts originally appeared on Fool.com.
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. The Motley Fool has no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.