Financial technology provider SEI Investments (NASDAQ:SEIC) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
SEI Investments beat analysts’ revenue expectations last quarter, reporting revenues of $641.6 million, up 14.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ AUM estimates and a beat of analysts’ EPS estimates.
Is SEI Investments a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting SEI Investments’s revenue to grow 13.8% year on year, improving from the 7.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. SEI Investments has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at SEI Investments’s peers in the capital markets segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Cohen & Steers delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 1.2%, and Goldman Sachs reported revenues up 23%, topping estimates by 11.5%. Cohen & Steers traded up 1% following the results while Goldman Sachs was down 1.7%.
Read our full analysis of Cohen & Steers’s results here and Goldman Sachs’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.9% on average over the last month. SEI Investments is down 1.8% during the same time and is heading into earnings with an average analyst price target of $118.38 (compared to the current share price of $104.74).
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