Burford Capital (NYSE:BUR) Posts Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Burford Capital (NYSE:BUR) posted its earnings results on Thursday. The company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.07), FiscalAI reports. Burford Capital had a return on equity of 9.12% and a net margin of 15.14%.The firm had revenue of $110.68 million during the quarter, compared to analysts’ expectations of $103.08 million. During the same quarter in the prior year, the firm posted $0.39 earnings per share.

Here are the key takeaways from Burford Capital’s conference call:

• Liquidity and cash generation improved: Burford reported $157 million of quarterly cash generation and $733 million in cash and marketable securities, with only about $400 million of debt due over the next four years.
• Management highlighted several portfolio catalysts, including a more than $600 million Cameroon arbitration award, a U.S. jury verdict that could generate nearly $100 million for Burford, a favorable German Supreme Court ruling, and certification of a £5 billion Google advertising claim.
• Executives said the diversified, multi-hundred-case portfolio remains active and that historical returns from pre-pandemic vintages have not materially deteriorated, although extended litigation timelines may weigh on IRRs.
• New business commitments were below the 2025 pace as Burford reduced exposure to very large, moderately profitable deals and shifted toward smaller, more attractive risk-adjusted opportunities following the YPF-related market reaction.
• The company posted only a slightly profitable, roughly break-even quarter and acknowledged continued investor concern about leverage, slower realizations, elevated debt yields, and the need to reduce operating costs and deleverage.

Burford Capital Trading Up 2.8%

Shares of Burford Capital stock traded up $0.12 on Friday, reaching $4.42. The company had a trading volume of 2,781,113 shares, compared to its average volume of 1,844,138. The firm has a market cap of $968.29 million, a price-to-earnings ratio of -0.57, a P/E/G ratio of 0.05 and a beta of 1.25. The company has a debt-to-equity ratio of 1.59, a current ratio of 13.72 and a quick ratio of 13.72. The firm’s 50-day moving average price is $4.26 and its two-hundred day moving average price is $5.96. Burford Capital has a 1 year low of $3.59 and a 1 year high of $14.14.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on BUR shares. Weiss Ratings downgraded Burford Capital from a “sell (d+)” rating to a “sell (d-)” rating in a research note on Monday, May 11th. Zacks Research raised shares of Burford Capital from a “strong sell” rating to a “hold” rating in a report on Friday, May 8th. B. Riley Financial restated a “buy” rating on shares of Burford Capital in a research report on Thursday, May 14th. Wedbush upped their price target on shares of Burford Capital from $4.75 to $5.00 and gave the company a “neutral” rating in a research note on Monday, May 11th. Finally, Wall Street Zen upgraded shares of Burford Capital from a “strong sell” rating to a “sell” rating in a research report on Saturday. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $9.33.

Institutional Investors Weigh In On Burford Capital

Several hedge funds and other institutional investors have recently made changes to their positions in BUR. Schonfeld Strategic Advisors LLC lifted its position in shares of Burford Capital by 126.5% during the fourth quarter. Schonfeld Strategic Advisors LLC now owns 24,163 shares of the company’s stock worth $216,000 after purchasing an additional 13,494 shares during the last quarter. Sciencast Management LP purchased a new position in Burford Capital in the 4th quarter worth about $160,000. Graham Capital Management L.P. lifted its holdings in Burford Capital by 99.4% during the 4th quarter. Graham Capital Management L.P. now owns 21,400 shares of the company’s stock valued at $191,000 after buying an additional 10,668 shares in the last quarter. Cibc World Markets Corp bought a new stake in Burford Capital during the 4th quarter valued at about $119,000. Finally, Franklin Resources Inc. boosted its position in Burford Capital by 102.4% in the 4th quarter. Franklin Resources Inc. now owns 25,041 shares of the company’s stock valued at $223,000 after buying an additional 1,049,031 shares during the period.

Burford Capital Company Profile

Burford Capital (NYSE: BUR) is a leading global finance firm that specializes in litigation and arbitration funding, risk management, and asset recovery. The company provides capital to law firms and corporate clients to finance legal fees and associated costs in commercial disputes. In exchange for funding, Burford shares in any awards or settlements, enabling clients to pursue meritorious claims without bearing upfront legal expenses.

Founded in 2009 by Christopher Bogart, Burford was among the first firms to establish a dedicated litigation finance business.