Burford Capital (NYSE:BUR) Releases Quarterly Earnings Results, Misses Expectations By $0.35 EPS

Burford Capital (NYSE:BUR) issued its quarterly earnings results on Friday. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of $0.18 by ($0.35), reports. The business had revenue of ($2,492.27) million during the quarter, compared to the consensus estimate of $136.10 million. Burford Capital had a return on equity of 1.97% and a net margin of 15.14%.

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

• Burford took a substantial non‑cash write‑down on the YPF asset after a 2–1 Second Circuit reversal, while noting it has realized a cash profit of more than $100 million; the company will file an en banc petition and pivot to arbitration, which management expects will take years to resolve.
• The core litigation‑finance portfolio is large and diversified (237 active assets, roughly 900 cases) and has generated $3.8 billion of cash realizations to date, with management modeling more than $5 billion of additional cash (ex‑YPF) and visibility to about $280 million of cash receipts in 2026 so far.
• Liquidity remains strong with about $740 million of cash and marketable securities after a $500 million January debt raise and no maturities until 2028, but reported leverage (debt/equity ≈ 3.5x) exceeds the company’s prior comfort level and the 2.0x incurrence test, so management plans gradual deleveraging via growth and cash harvesting.
• Origination and growth momentum continues — Q1 had $133 million of definitive commitments and $108 million of deployments, supported by more than £1 billion of undrawn definitive commitments and ~£600 million of discretionary capacity, which management says will add material future cash flow each year.

Burford Capital Trading Down 0.1%

Burford Capital stock traded down $0.01 during trading hours on Friday, reaching $5.16. The company had a trading volume of 5,042,908 shares, compared to its average volume of 2,993,839. The firm has a market cap of $1.13 billion, a price-to-earnings ratio of 19.09 and a beta of 1.28. The company has a 50-day moving average price of $6.20 and a 200 day moving average price of $8.27. The company has a debt-to-equity ratio of 0.68, a current ratio of 10.93 and a quick ratio of 10.93. Burford Capital has a 12-month low of $3.59 and a 12-month high of $15.10.

Burford Capital Announces Dividend

The firm also recently declared a dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 22nd will be paid a $0.0625 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a yield of 147.0%. Burford Capital’s payout ratio is currently 44.44%.

Wall Street Analysts Forecast Growth

BUR has been the subject of a number of research analyst reports. Bank of America assumed coverage on shares of Burford Capital in a research note on Wednesday, February 18th. They issued a “buy” rating for the company. Weiss Ratings restated a “sell (d+)” rating on shares of Burford Capital in a research report on Friday, March 27th. Wedbush reaffirmed a “neutral” rating and issued a $4.75 price objective (down from $6.00) on shares of Burford Capital in a research note on Monday, March 30th. Finally, Zacks Research cut shares of Burford Capital from a “hold” rating to a “strong sell” rating in a research report on Monday, March 2nd. Three analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Burford Capital has a consensus rating of “Hold” and a consensus price target of $12.00.

Institutional Trading of Burford Capital

A number of hedge funds have recently made changes to their positions in BUR. Mariner LLC increased its holdings in shares of Burford Capital by 49.6% in the 4th quarter. Mariner LLC now owns 25,404 shares of the company’s stock worth $227,000 after purchasing an additional 8,418 shares in the last quarter. Franklin Resources Inc. raised its holdings in Burford Capital by 102.4% during the fourth quarter. Franklin Resources Inc. now owns 25,041 shares of the company’s stock valued at $223,000 after acquiring an additional 1,049,031 shares during the period. Schonfeld Strategic Advisors LLC lifted its holdings in shares of Burford Capital by 126.5% in the fourth quarter. Schonfeld Strategic Advisors LLC now owns 24,163 shares of the company’s stock worth $216,000 after buying an additional 13,494 shares in the last quarter. Graham Capital Management L.P. boosted its stake in Burford Capital by 99.4% during the fourth 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 during the last quarter. Finally, Sciencast Management LP purchased a new position in shares of Burford Capital in the 4th quarter worth $160,000.

About Burford Capital

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.