Some Positives but SEI’s Institutional Investors Weak and Expenses are Creeping Up

SEI Investments started 2022 with a decent but not great first quarter. SEI reported first-quarter revenue of $581 million and EPS of $1.36 which compares with the FactSet consensus of $579 million and $1.44, respectively. The first quarter includes a one-time cancellation fee of $88 million, so as a result, we view SEI’s operating revenue and EPS as $493 million and $0.89, respectively. We will maintain our narrow moat rating and $74 fair value estimate on SEI’s shares.