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SEI Investments (SEIC) Q3 Earnings call transcript Oct 23, 2024

Daily EarningsMonday, Oct 28, 2024 8:27 pm ET

1min read

EFSC -- QTOP -- SEI --

In the recent Q3 2024 earnings call, SEI showcased a strong financial performance, with EPS of $1.19, marking the second-highest quarter in the company's history. The company's focus on strategic initiatives, market activity, and client engagement has yielded impressive results, underscoring its commitment to growth and innovation.

Financial Highlights

SEI reported a 13% increase in revenue, 33% increase in operating income, and a 37% increase in EPS, demonstrating the company's financial strength. The revenue growth was broadly favorable across all business segments, with the private banking business and investment managers business posting notably strong performance. The company also saw a record-breaking $46 million in net sales events, highlighting its ability to win in core markets and expand its share in total addressable markets.

Strategic Initiatives

SEI's strategic focus on increasing market activity, client engagement, and enterprise positioning is paying off. The company is investing in platforms and talent to maximize new client growth and client expansion. This includes its blueprint for the private banking business, which aims to increase market share and power growth-oriented organizations. SEI is also seeing demand for its data, cloud, and integration transformation services, positioning it well for future growth.

Investment Management and Capital Allocation

The investment management unit, adviser and institutional businesses, have been a key driver of SEI's growth. The addition of Michael Lane, a seasoned executive from BlackRock, is expected to bring fresh perspectives and expertise to reimagine asset management and capitalize on market opportunities. SEI's focus on strategic investments and capital allocation, including repurchasing approximately $86 million in shares, underscores its commitment to delivering value to shareholders.

Market Outlook

Looking ahead, SEI remains focused on maximizing enterprise value for its shareholders. The company's confidence in its strategic initiatives, combined with its stability, balance sheet strength, and client focus, positions it well for competitive differentiation and accelerated growth. The continued consolidation and influx of private equity capital into the intermediary space presents both challenges and opportunities for SEI, and the company is positioning itself to strategically invest in the future of advice and advice delivery.

Conclusion

SEI's Q3 2024 earnings call paints a picture of a company on the right track for sustained growth. Its strong financial performance, strategic initiatives, and focus on innovation and client-centricity position it well for success in the evolving financial services landscape. With a robust pipeline and a clear focus on maximizing enterprise value, SEI is well-positioned to continue delivering value to its clients and shareholders.

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