Asset management company SEI Investments Company (SEIC) Wednesday reported a better-than-expected profit for the third quarter, as it had investment gains in the quarter compared to investment losses last year.
Net income attributable to the company for the third quarter rose 53% to $52.73 million or $0.27 per share from $34.49 million or $0.18 per share in the previous year.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 13% to $275.93 million from $316.09 million last year, yet topped analysts' revenue estimate of $265.16 million.
Asset management, administration and distribution fees declined to $206.23 million from $243.16 million a year ago. Information processing and software servicing fees were $56.24 million, compared to $56.58 million last year. Transaction-based and trade execution fees declined to $13.46 million from $16.35 million in the previous year.
All segments realized lower third-quarter 2009 revenues compared to third quarter 2008 primarily due to still-depressed capital markets when compared to year ago levels, the company said.
The third-quarter 2009 results include gains of $14.9 million associated with SIV-related securities held by SEI. SEI purchased the remaining SIV in September from the SDIT Prime Obligation Fund for $60.7 million. Consequently, SEI's obligation under the Capital Support Agreement was canceled. SEI noted that it has now purchased all SIVs owned by its money market funds and has no capital support agreements left in place.
For the quarter, the company reported a net gain on investments of $15.62 million for the third quarter, compared to a loss of $42.05 million last year. Assets under management increased by $20.4 billion during the third quarter to $156.1 billion, primarily due to market appreciation.
For the nine-month period, net income attributable to the company declined to $128.50 million or $0.67 per share from $129.60 million or $0.66 per share in the same period of the previous year. Total revenues for the period declined 21% to $776.55 million from $979.52 million a year ago.
SEIC is currently trading at $19.10, down $0.43 or 2.20%, on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.