#USA #Financial Performance #SEI Investments #Oaks #EPS Growth

SEI Investments Company Reports Impressive Q4 2024 Financial Performance

On January 29, 2025, SEI Investments Company (NASDAQ: SEIC) announced its financial results for the fourth quarter of 2024, showcasing remarkable growth in its earnings and profitability. The company's earnings per share (EPS) surged by 31% compared to the same period last year, alongside notable increases in revenue and operating income by 15% and 43%, respectively. This surge in performance reflects SEI's successful execution of its growth strategy, particularly over the past 18 months.

Financial Overview

In the latest quarter, SEI's consolidated revenue reached $557.19 million, a notable increase from $484.86 million in Q4 2023. The operating income for the quarter was $145.54 million, bolstered by improved cost management practices and increased operational efficiency. The company's operating margin demonstrated a healthy rise to 26%, compared to 21% a year earlier.

The net income for the fourth quarter stood at $155.77 million, reflecting a 29% increase over the previous year. Diluted earnings per share reached $1.19, marking a 31% rise from $0.91 a year ago, indicating sustained growth in profitability.

Key Business Segments Performance

SEI's performance was notably strong across all its business segments:

1. Private Banks: Generated revenues of $140.14 million, up 14%, with an operating profit increase of 56%.
2. Investment Advisors: Achieved revenues of $139.27 million, marking a robust 27% increase, with operating profits rising by 47%.
3. Institutional Investors: Maintained a revenue increase to $70.81 million, although this was only a slight rise of 1% compared to the previous year, reflecting ongoing challenges in the corporate defined benefit plan landscape.
4. Investment Managers: Recorded revenues of $191.26 million, a growth of 13%, with operating profits growing by 26%.

These figures indicate SEI's diversified investment strategies and robust client retention efforts, driving increased revenue across its segments.

Yearly Performance Summary

For the full year 2024, SEI reported total revenues of $2.13 billion, an increase of 11% from $1.92 billion in 2023. The net income for the year reached $581.19 million, a 26% growth over the previous year's figure of $462.26 million. The company's commitment to investment in its operational capabilities and client service enhancements has clearly yielded fruitful results.

Strategic Focus Going Forward

CEO Ryan Hicke emphasized the importance of maximizing returns on invested capital globally, stating that SEI has momentum and is eager to maintain the growth trajectory into 2025. The company's dedication to client service and an enterprise-first mindset has ignited significant growth momentum, which they are keen to continue building upon in the upcoming year.

Furthermore, SEI's proactive measures in recruiting and grooming leadership within global market niches are set to enhance its competitive edge.

The company repurchased 3.1 million shares during Q4 for $259.5 million, reflecting confidence in its long-term value and commitment to returning capital to shareholders.

Conclusion

With such compelling financial results, SEI Investments Company has positioned itself for further success in 2025. Stakeholders are optimistic as SEI continues to deliver impressive financial outcomes, underpinned by a solid strategic framework and unwavering commitment to its client base and market positioning.