Burford Capital (NYSE:BUR) Releases Earnings Results

Burford Capital (NYSE:BUR) announced its earnings results on Thursday. The company reported $0.01 earnings per share (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 company had revenue of $110.68 million for the quarter, compared to analyst estimates of $103.08 million. During the same quarter in the previous year, the company 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 BUR stock traded up $0.12 during trading hours 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. Burford Capital has a 1-year low of $3.59 and a 1-year high of $14.14. 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 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 50 day moving average of $4.26 and a 200 day moving average of $5.96.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on BUR shares. Wall Street Zen upgraded shares of Burford Capital from a “strong sell” rating to a “sell” rating in a research report on Saturday. B. Riley Financial restated a “buy” rating on shares of Burford Capital in a research report on Thursday, May 14th. Weiss Ratings lowered Burford Capital from a “sell (d+)” rating to a “sell (d-)” rating in a research note on Monday, May 11th. Deutsche Bank Aktiengesellschaft cut Burford Capital from a “buy” rating to a “hold” rating and set a $5.00 price target on the stock. in a report on Monday, May 11th. Finally, Zacks Research upgraded shares of Burford Capital from a “strong sell” rating to a “hold” rating in a research report on Friday, May 8th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $9.33.

Hedge Funds Weigh In On Burford Capital

Several hedge funds have recently added to or reduced their stakes in BUR. Quadrant Capital Group LLC bought a new stake in shares of Burford Capital in the 4th quarter valued at about $53,000. Strs Ohio bought a new stake in Burford Capital in the first quarter valued at approximately $55,000. Insigneo Advisory Services LLC bought a new stake in Burford Capital in the fourth quarter valued at approximately $93,000. Equitable Holdings Inc. acquired a new stake in Burford Capital in the fourth quarter worth $94,000. Finally, Campbell & CO Investment Adviser LLC acquired a new stake in Burford Capital in the fourth quarter worth $106,000.

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.