SEI Investments Q2 EPS up 70%

Overview

• SEI Q2 2025 EPS rises 70% yr/yr, aided by $94.4 mln gain on sale of SEI's Family Office Services business

• Revenue grows 8% yr/yr but misses analyst expectations, per LSEG data

• Operating income up 9%, operating margin improves to 27%

Outlook

• SEI Investments focuses on strategic investments for sustained growth

• Company invests in talent, technology, infrastructure to enhance capabilities

• SEI welcomes new directors to aid in executing growth strategies

• Company continues capital investments in areas with long-term opportunities

Result Drivers

• EPS BOOST - Q2 EPS increased by 70% yr/yr, benefiting from a $0.58 gain, primarily due to a $94.4 mln gain on the sale of SEI's Family Office Services business

• REVENUE GROWTH - Revenue rose 8% yr/yr, driven by a balanced mix of wins across alternatives, traditional, and international investment managers

• OPERATING MARGIN - Operating margin increased to 27% from 26% in Q2 2024, despite a decline from Q1 2025, due to increased investments in talent and technology

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for SEI Investments Co is $101.00, about 10.3% above its July 22 closing price of $90.58

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nPn8lkSbVa