Burford Capital (NYSE:BUR) Announces Earnings Results, Misses Estimates By $0.07 EPS

Key Points

• Burford Capital reported quarterly EPS of $0.01, missing the $0.08 consensus estimate by $0.07 and falling from $0.39 a year earlier. The company remained slightly profitable, with a 15.14% net margin and 11.72% return on equity.
• Liquidity improved, with $157 million in quarterly cash generation and $733 million in cash and marketable securities. Management also cited potential catalysts, including a $600 million-plus Cameroon arbitration award and other significant legal claims.
• Investor concerns remain focused on leverage, slower litigation realizations, elevated debt costs and operating expenses. Shares traded near $4.26, while analysts maintained a consensus “Hold” rating with a $9.33 price target.

Burford Capital (NYSE:BUR - Get Free Report) released its earnings results on Thursday. The company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.08 by ($0.07), FiscalAI reports. Burford Capital had a net margin of 15.14% and a return on equity of 11.72%. During the same quarter last year, the firm earned $0.39 EPS.

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 Down 0.1%

Shares of Burford Capital stock traded down $0.01 during trading hours on Thursday, hitting $4.26. The company's stock had a trading volume of 2,737,054 shares, compared to its average volume of 1,820,684. Burford Capital has a 12 month low of $3.59 and a 12 month high of $14.14. The stock has a 50 day moving average of $4.26 and a 200 day moving average of $5.97. The company has a market capitalization of $934.33 million, a PE ratio of -0.58, a price-to-earnings-growth 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.

Hedge Funds Weigh In On Burford Capital

Several institutional investors and hedge funds have recently modified their holdings of BUR. Quadrant Capital Group LLC acquired a new stake in shares of Burford Capital during the fourth quarter worth $53,000. Strs Ohio bought a new position in Burford Capital during the 1st quarter worth about $55,000. Insigneo Advisory Services LLC bought a new position in Burford Capital during the 4th quarter worth about $93,000. Equitable Holdings Inc. acquired a new stake in shares of Burford Capital in the 4th quarter valued at about $94,000. Finally, Campbell & CO Investment Adviser LLC acquired a new stake in shares of Burford Capital in the 4th quarter valued at about $106,000.

Analyst Ratings Changes

BUR has been the topic of several research reports. Weiss Ratings downgraded shares of Burford Capital from a "sell (d+)" rating to a "sell (d-)" rating in a report on Monday, May 11th. Zacks Research upgraded shares of Burford Capital from a "strong sell" rating to a "hold" rating in a research note on Friday, May 8th. Deutsche Bank Aktiengesellschaft lowered Burford Capital from a "buy" rating to a "hold" rating and set a $5.00 price target on the stock. in a research note on Monday, May 11th. Wedbush increased their price objective 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 lowered Burford Capital from a "sell" rating to a "strong sell" rating in a research note on Saturday, May 16th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $9.33.

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.

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