The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SEI Investments missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and earnings per share contracted significantly.
Margins contracted across the board.
SEI Investments booked revenue of $226.2 million. The four analysts polled by S&P Capital IQ expected net sales of $235.8 million. Sales were 2.2% lower than the prior-year quarter's $231.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.25. The three earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.25 for Q4 were 24% lower than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 38.7%, 350 basis points worse than the prior-year quarter. Operating margin was 19.6%, 280 basis points worse than the prior-year quarter. Net margin was 19.6%, 740 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $249.5 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $1.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 232 members out of 246 rating the stock outperform, and 14 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give SEI Investments a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SEI Investments is outperform, with an average price target of $23.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.