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AMN Healthcare (AMN) Q1 Earnings In Line With Estimates

Zacks Equity Research
·4 min read

AMN Healthcare Services Inc. AMN reported first-quarter 2020 adjusted earnings per share (EPS) of 79 cents, in line with the Zacks Consensus Estimate. The bottom line increased 5.3% year over year.

Revenues of $602.5 million surpassed the Zacks Consensus Estimate by 0.1%. On a year-over-year basis, revenues increased 13.2%.

Segment Details

In the first quarter of 2020, the Nurse and Allied Solutions segment’s revenues totaled $424.3 million, up 14% year over year and 3% on an organic basis. This was driven by 12% year-over-year growth in the Travel Nurse division revenues and a 41% rise in the Allied division.

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The Physician and Leadership Solutions segment’s revenues totaled $137.8 million, up 0.6% year over year.

Technology and Workforce Solutions segment revenues came in at $40.3 million, up 84% year over year and 13% on an organic basis, primarily attributable to the company’s recent acquisitions of b4health and Stratus Video.

AMN Healthcare Services Inc Price, Consensus and EPS Surprise

 

AMN Healthcare Services Inc Price, Consensus and EPS Surprise
AMN Healthcare Services Inc Price, Consensus and EPS Surprise

AMN Healthcare Services Inc price-consensus-eps-surprise-chart | AMN Healthcare Services Inc Quote

Margin

In the first quarter, gross profit totaled $202.1 million, up 14.3% year over year. As a percentage of revenues, gross margin was 33.5%, expanding 34 basis points (bps).

Adjusted operating profit in the quarter was $55.8 million, down 1.6%. As a percentage of revenues, adjusted operating margin was 9.3%, down 139 bps.

Guidance

For the second quarter of 2020, AMN Healthcare expects revenues in the range of $550-$570 million.

Operating margin is expected above 6%, while adjusted EBITDA margin is expected to cross 12%.

Our Take

AMN Healthcare exited the first quarter on a mixed note. The company gained from core operating segments in the quarter. Management is upbeat about the latest Stratus Video and Advanced Medical buyouts, which are expected to expand the company’s travel as well as school therapy and travel nurse staffing capabilities. The expansion in gross margin is also encouraging.

However, due to the coronavirus pandemic, the company witnessed nationwide reduction in elective procedures and overall healthcare utilization starting the second half of March. Also, contraction in operating margin adds to thewoes.

Zacks Rank and Key Picks

AMN Healthcare currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are Aphria Inc. APHA, Biogen Inc. BIIB and Eli Lilly and Company LLY.

Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.

Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.

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