SEI Investments Earnings: A Mixed Quarter as Institutional Investors Weak, Investment Managers Robust

Narrow-moat SEI Investments reported a mixed third quarter. Revenue of $477 million fell shy of the FactSet consensus of $483 million while EPS of $0.87 was in line. Similar to what we've seen in the last several quarters, the firm's fund administration unit, referred to as investment managers, continues to outshine the firm's other segments, which face various headwinds. As we update our model, we are reducing our fair value estimate to $66 from $69 to account for some market headwinds because our last update and weakness in the firm's institutional investors segment.