SEI Investments' Q4 Earnings Miss as Expenses Increase Y/Y

Core Viewpoint - SEI Investments Co. reported a mixed performance in Q4 2024, with earnings per share slightly missing estimates but showing significant year-over-year growth in both net income and total revenues [1][2][3]. Financial Performance - Q4 2024 earnings per share (EPS) was $1.19, missing the Zacks Consensus Estimate by a penny, but reflecting a 30.8$155.8 million, up 29% from the previous year, surpassing the estimate of $151.3 million [2]. - Total revenues for Q4 2024 reached$557.2 million, a 14.9% increase year-over-year, exceeding the Zacks Consensus Estimate of $553.9 million [3]. - For the full year 2024, total revenues increased by 10.7$2.13 billion, also beating the Zacks Consensus Estimate of $2.12 billion [3]. Expenses and Operating Income - Total expenses in Q4 2024 were$411.6 million, up 7.4% year-over-year, slightly above the estimate of $404.8 million [4]. - Operating income increased by 43.1$145.5 million, closely aligning with the estimate of $145.6 million [4]. Assets Under Management - As of December 31, 2024, assets under management (AUM) were$476.7 billion, reflecting a 10.4% increase from the prior year [5]. - Client assets under administration (AUA) reached $1.06 trillion, up 12$10.3 billion related to Funds of Funds assets [5]. Share Repurchase Activity - In the reported quarter, SEI Investments repurchased 3.1 million shares for $259.5 million at an average price of$83.43 per share [6]. Strategic Outlook - The company's global presence, diverse product offerings, solid balance sheet, strategic acquisitions, and robust AUM are expected to support revenue growth [7]. - Technological innovations are anticipated to enhance financial performance, although elevated expenses and reliance on fee-based revenues present challenges [7].