SEI Investments Co

SEIC: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$99.00	Kvtccv	Cbkbmbjg

Decent Second Quarter Given Market Movements as New CEO Seeks To Refresh SEI

Rajiv Bhatia

Jul 21, 2022

SEI Investments reported decent second-quarter financial results. Revenue came in at $482 million, a 2% sequential decline excluding the impact of termination fees as markets moved further south. This is a good result in our view given the market declines and we note that this revenue beat the FactSet consensus by 2%. On this $482 million of revenue, SEI generated operating margin of 24%, down sequentially and year over year amid SEI’s revenue model of asset-based fees and mostly fixed expense structure. We will maintain our narrow moat rating and fair value estimate of $71.

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