Why Is SEI (SEIC) Down 7.9% Since Last Earnings Report?

Core Viewpoint - SEI Investments reported a mixed earnings performance for Q4 2024, with earnings per share slightly missing estimates but showing significant year-over-year growth. The company faces challenges from rising expenses, although revenue and assets under management (AUM) have improved [2][3][4]. Financial Performance - Q4 2024 earnings per share were $1.19, missing the Zacks Consensus Estimate by $0.01, but reflecting a 30.8% increase from the prior year [2]. - Net income for Q4 2024 was $155.8 million, up 29% year-over-year, surpassing the estimate of $151.3 million [2]. - For the full year 2024, earnings per share were $4.41, also missing estimates by $0.01, but up 27.5% year-over-year. Net income increased 25.7% to $581.2 million [3]. Revenue and Expenses - Total revenues for Q4 2024 were $557.2 million, a 14.9% increase year-over-year, driven by higher asset management and service fees, exceeding the Zacks Consensus Estimate of $553.9 million [4]. - For the full year 2024, total revenues reached $2.13 billion, up 10.7% year-over-year, also beating the Zacks Consensus Estimate of $2.12 billion [4]. - Total expenses for Q4 2024 were $411.6 million, a 7.4% increase year-over-year, driven by various cost components, slightly above the estimate of $404.8 million [5]. Assets Under Management - As of December 31, 2024, AUM was $476.7 billion, reflecting a 10.4% increase from the prior year. Client assets under administration (AUA) were $1.06 trillion, up 12% year-over-year [6]. Share Repurchase - In the reported quarter, SEI Investments repurchased 3.1 million shares for $259.5 million at an average price of $83.43 per share [7]. Market Sentiment and Outlook - Estimates for SEI Investments have trended downward over the past month, indicating a potential shift in market sentiment [8]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11].