Analyst Note| Rajiv Bhatia, CFA |
SEI started 2021 with decent financial results as the firm is benefiting from equity market appreciation. First-quarter revenue of $456 million was a touch above the consensus at $455 million. Earnings per share of $0.89 was also above the FactSet consensus of $0.88. We are maintaining our narrow moat rating and modestly increasing our fair value estimate to $65 per share from $62 to reflect the market gains and growth in the firm's investment managers segment. While operating margin increased to 29.2% from 26.6% in the year-ago period, we expect some of this to subside as travel and compensation expenses catch up.