SEI Earnings: Bull Market, Cash Sweep Boost Profits; Mixed Trends Across Segments Continue

SEI Investments reported a decent start to 2024. Market appreciation helped boost revenue, which grew 9% in the first quarter to $512 million. Similar to trends seen in recent quarters, the investment managers segment continued to perform well while the institutional investors segment struggled. The investor advisors segment benefited from its cash sweep program, and the private banks segment is showing signs of margin improvement. Overall, there was little in SEI’s earnings release that would alter our long-term view of the firm. We will maintain our narrow moat rating and $70 fair value estimate.