Burford Capital (NYSE:BUR – Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.01, FiscalAI reports. The firm had revenue of $267.38 million during the quarter, compared to analyst estimates of $109.13 million. During the same quarter in the previous year, the business posted ($0.09) earnings per share.
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 Stock Up 9.6%
Burford Capital stock traded up $0.36 during mid-day trading on Wednesday, hitting $4.16. The company had a trading volume of 4,526,868 shares, compared to its average volume of 2,619,030. The stock has a market cap of $912.35 million, a price-to-earnings ratio of -0.54 and a beta of 1.29. Burford Capital has a 1 year low of $2.86 and a 1 year high of $10.10. The company has a quick ratio of 9.56, a current ratio of 9.56 and a debt-to-equity ratio of 1.64. The business has a fifty day moving average of $3.79 and a 200 day moving average of $5.36.
Analyst Upgrades and Downgrades
A number of equities analysts recently commented on the stock. Wall Street Zen upgraded shares of Burford Capital from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 8th. Wedbush initiated coverage on Burford Capital in a research note on Thursday, October 22nd. They issued a “neutral” rating and a $3.65 price target on the stock. Zacks Research raised Burford Capital from a “strong sell” rating to a “hold” rating in a report on Friday, October 9th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Burford Capital in a research report on Friday, August 7th. Two equities 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 stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $8.88.
Check Out Our Latest Report on Burford Capital
About Burford Capital
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.
Featured Stories
- Five stocks we like better than Burford Capital
- Why ExxonMobil and Chevron Reminded Investors to Keep it Simple
- Amazon Has Erased Its Earnings Sell-Off, But Is the Biggest Opportunity Still Ahead?
- onsemi’s AI Sales Surge 175%: Is a Stock Recovery Next?
- Energy Transfer’s Earnings Miss May Be Hiding Its Strongest Advantage
Receive News & Ratings for Burford Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Burford Capital and related companies with MarketBeat.com's FREE daily email newsletter.
