BUR Earnings Prediction
The chart below shows how BUR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BUR sees a +1.56% change in stock price 10 days leading up to the earnings, and a -0.17% change 10 days following the report. On the earnings day itself, the stock moves by -1.77%. This data can give you a slight idea of what to expect for the next quarter's release.
BUR Key Earning Data
2024/Q4
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BUR Earnings Analysis
Burford Capital Ltd Corporation (BUR.N) Earnings Conference Call
Positive
Record Net Realized Gains: Strong cash realizations with record levels of net realized gains, reaching $327 million, more than double the average annual realized gains over the prior four years.
Strong Portfolio Growth: Portfolio growth of approximately 8% in 2024, maintaining a 15% CAGR over the last five years, indicating strong business expansion.
Portfolio Revenue Success: Realizations of $641 million in 2024, significantly higher than 2023, with multiple cases generating over $20 million each, showcasing diversified success across the portfolio.
Strong ROIC Performance: Return on Invested Capital (ROIC) for 2024 was 108%, above historical averages, reflecting effective investment strategies and strong portfolio performance.
Cost Management Improvement: Operating expenses decreased by approximately 43% compared to 2023, indicating improved cost management and operational efficiency.
Enhanced Financial Reporting Transparency: Transition to U.S. domestic filer with enhanced transparency in financial reporting, making it easier for investors to understand the company's performance.
Strong Cash Generation: High cash generation with $700 million in cash receipts during the year, increasing cash and securities from $300 million to over $500 million by year-end.
Negative
Earnings Miss Report: Burford Capital Limited misses on earnings expectations, reporting an EPS of $-0.06 against expectations of $0.56.
Unrealized Losses Impact: Unrealized losses in the fourth quarter were reported, which caused adverse market reactions, despite the portfolio performing well overall.
Operating Expenses Reduction: Operating expenses were down significantly, but this was largely due to lower long-term incentive compensation linked to unrealized gains from the previous year, particularly from the YPF judgment.
Discount Rate Volatility Impact: The company faced volatility in discount rates throughout 2024, which negatively impacted unrealized gains, masking strong fundamental performance in the fourth quarter.
Asset Management Revenue Decline: The Asset Management segment saw a decrease in revenue recognized, with cash receipts dropping from $32 million in 2023 to $26 million in 2024, indicating a decline in performance in this area.
BUR FAQs
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BUR Earning Call Sentiment
Burford Capital Limited (NYSE:BUR) Q4 2024 Earnings Call Transcript
BUR.N
0.88%Positive
The earnings call reveals an EPS miss and regulatory transition risks, leading to potential instability. Despite strong net realized gains and ROIC, concerns about unrealized losses, interest rate volatility, and high debt obligations persist. The Q&A section highlights management's vague responses on regulatory impacts. With no share buyback or dividend program, the sentiment is negative, especially for a mid-cap company like Burford Capital, likely resulting in a stock price decline of -2% to -8%.
