Burford Capital (NYSE:BUR) Posts Quarterly Earnings Results

by · The Markets Daily

Burford Capital (NYSE:BUR – Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.10 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $0.01, FiscalAI reports. The firm had revenue of $267.38 million for the quarter, compared to analysts’ expectations of $109.13 million. During the same period in the prior year, the company earned ($0.09) EPS.

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

  • Burford reported a strong quarter, with revenue more than doubling year over year and an annualized ROE of 13.4%. Management said adverse discount-rate movements significantly reduced non-cash fair-value results; excluding that impact, it estimated revenue would have exceeded $200 million and ROE would have been well above 40%.
  • The company began deleveraging, reducing debt by $100 million, retiring its 2028 maturity and lowering its debt-to-equity ratio by a third of a turn. It said liquidity remained strong, while emphasizing that it has no fixed cash minimum or specific leverage target.
  • Burford highlighted a recently completed case that generated more than 11 times invested capital, with approximately $64 million of proceeds already received in the fourth quarter. Management also said cumulative cash realizations have passed $4 billion, while noting that case timing can be lengthy and unpredictable.
  • New definitive commitments were lower year to date as Burford prioritized liquidity and deleveraging over some opportunities with moderate expected returns. Management said it remains selective about deployment and does not plan to take on additional debt to fund a surge in demand.
  • Several potentially significant cases remain unresolved: the Cameroon arbitration award and record Apple patent verdict require further proceedings, while the YPF matter continues in U.S. courts and may proceed to arbitration. Management described these as meaningful developments but cautioned that outcomes and timing remain uncertain.

Burford Capital Trading Down 9.2%

NYSE:BUR traded down $0.36 during trading hours on Friday, reaching $3.60. The company’s stock had a trading volume of 2,080,743 shares, compared to its average volume of 2,622,168. The company has a debt-to-equity ratio of 1.64, a quick ratio of 9.56 and a current ratio of 9.56. The firm has a 50-day simple moving average of $3.78 and a 200-day simple moving average of $5.31. The firm has a market capitalization of $789.40 million, a price-to-earnings ratio of -0.48 and a beta of 1.29. Burford Capital has a 1 year low of $2.86 and a 1 year high of $10.10.

Analyst Ratings Changes

A number of equities analysts have recently commented on BUR shares. Weiss Ratings lowered Burford Capital from a “sell (d-)” rating to a “sell (e+)” rating in a report on Wednesday. Wall Street Zen raised Burford Capital from a “strong sell” rating to a “sell” rating in a report on Saturday, August 8th. Wedbush started coverage on shares of Burford Capital in a research report on Thursday, October 22nd. They issued a “neutral” rating and a $3.65 price objective on the stock. Finally, Zacks Research upgraded shares of Burford Capital from a “strong sell” rating to a “hold” rating in a research report on Friday, October 9th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $8.88.

Check Out Our Latest Report on BUR

Burford Capital Company Profile

(Get Free Report)

Burford Capital Limited (NYSE: BUR) is a global legal finance and asset management firm. The company provides capital to businesses and law firms involved in commercial litigation and arbitration, allowing clients to finance legal expenses, manage risk, or access the potential value of legal claims and judgments without relying solely on their balance sheets.

Its services include single-case and portfolio litigation finance, post-settlement and judgment monetization, legal asset management, and corporate legal finance.

Read More