AMN Healthcare Earnings Beat Q1 Estimates, Stock Dips on Weak Q2 Outlook

DALLAS – AMN Healthcare Services Inc (NYSE:) reported first-quarter earnings that surpassed analyst expectations, but a weaker-than-expected outlook for the second quarter led to a slight decline in the company’s stock.

The healthcare staffing firm announced an adjusted EPS of $0.97 for Q1, marginally beating the consensus estimate of $0.95. Revenue for the quarter was $820.9 million, also topping the analyst projection of $816.54 million.

Despite the earnings beat, AMN Healthcare’s stock edged down by 0.3% following the release of its forward-looking guidance. For the second quarter of 2024, the company expects revenue to be between $730 million and $750 million, which falls short of the consensus estimate of $776.8 million.

The company’s first-quarter revenue represented a significant 27% drop from the same quarter last year, with a gross profit decrease of 30% and a net income fall of 79%. GAAP diluted EPS declined by 78%, and adjusted diluted EPS saw a 61% decline year-over-year (YoY).

The company attributed the stronger-than-expected earnings to proactive expense management, despite the challenges of weaker demand and a competitive environment in its largest business, nurse staffing.

AMN Healthcare’s President and CEO, Cary Grace, highlighted the company’s progress in the first quarter, noting year-over-year volume growth in several segments and a strong cash flow from operations at $81 million. Grace also emphasized the company’s efforts to innovate and adapt its solutions to meet the evolving needs of healthcare organizations.

The company’s Nurse and Allied Solutions segment experienced a 37% YoY decline in revenue, with travel nurse staffing revenue down 44%. However, the Physician and Leadership Solutions segment saw a 14% increase in revenue YoY, driven primarily by the MSDR acquisition. The Technology and Workforce Solutions segment reported a 17% decrease in revenue YoY.

AMN Healthcare remains committed to managing expenses and capital spending in the near term while pursuing long-term objectives to build value for stakeholders. The company ended the quarter with a net leverage ratio of 2.4:1.

Investors will be watching closely to see how AMN Healthcare navigates the challenges ahead, particularly in the nurse staffing segment, as it continues to adapt its business model in response to the changing healthcare landscape.

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