The SEI Investments Company (NASDAQ:SEIC) Full-Year Results Are Out And Analysts Have Published New Forecasts

It's been a good week for SEI Investments Company (NASDAQ:SEIC) shareholders, because the company has just released its latest annual results, and the shares gained 3.8% to US$66.32. It was a credible result overall, with revenues of US$1.9b and statutory earnings per share of US$3.46 both in line with analyst estimates, showing that SEI Investments is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for SEI Investments

After the latest results, the six analysts covering SEI Investments are now predicting revenues of US$2.04b in 2024. If met, this would reflect a credible 6.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 13% to US$3.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.00b and earnings per share (EPS) of US$3.92 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$67.60, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values SEI Investments at US$73.00 per share, while the most bearish prices it at US$62.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that SEI Investments' rate of growth is expected to accelerate meaningfully, with the forecast 6.1% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.8% per year. So it's clear that despite the acceleration in growth, SEI Investments is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on SEI Investments. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SEI Investments going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with SEI Investments , and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.