OAKS, PA — SEI Investments Company (NASDAQ: SEIC) has delivered record financial results for the fourth quarter of 2024, driven by robust execution of its growth strategy. The company reported a 31% increase in diluted earnings per share (EPS) year-over-year, reaching $1.19. Revenue and operating income rose by 15% and 43%, respectively, while operating margins improved to 26%.
Ryan Hicke, SEI’s Chief Executive Officer, expressed optimism about the company’s direction. “Our record 2024 results reflect consistent execution against our growth strategy, particularly the progress we have driven in the last 18 months. Our net sales events in 2024 increased 58% from 2023—representing a mix across our entire organization and reinforcing the high level of market engagement for our enterprise capabilities,” he said.
Key Performance Metrics
- Consolidated revenue and operating profit rose across all business segments.
- Private Banks revenue increased by 14%, while operating profit climbed 56%, supported by sales growth, client retention, and backlog conversion.
- Investment Managers achieved a 26% increase in operating profit, bolstered by sales momentum and cross-selling to global and private credit clients.
- Investment Advisors saw a 47% rise in operating profit, with a $21.1 million contribution from the integrated cash program.
Net sales events totaled $38.2 million for the fourth quarter, bringing the full-year total to $127.9 million, a 58% boost compared to 2023. These gains were driven by both new and existing clients spanning domestic and international markets.
Operational Insights and Challenges
The company continued to see strong asset growth. Average assets under administration rose 15% compared to the previous year, while average assets under management gained 18%. However, fourth-quarter ending assets under management declined by 3% compared to Q3 2024, attributed to valuation changes and net outflows, particularly in LSV and Institutional Investors.
Earnings for LSV came in at $33.4 million, down slightly from $35.4 million in Q4 2023, due to lower incentive fees. Additionally, SEI noted the impact of higher incentive compensation and stock-based expenses, which slightly offset EPS growth in the quarter.
Shareholder Returns
SEI repurchased 3.1 million shares of common stock for $259.5 million during the quarter, at an average price of $83.43 per share, reflecting its commitment to maximizing shareholder value.
Hicke concluded by emphasizing SEI’s forward momentum and goals for the year ahead. “SEI has real momentum, and our employees’ commitment to delivering for our clients and embracing an enterprise-first mindset has been core to igniting that momentum. We’re excited for what’s ahead in 2025 and to continue delivering long-term value for our stakeholders.”
SEI’s strong end to 2024 spotlights its ability to execute on strategic initiatives and maintain its relevance in an evolving financial landscape.
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