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AMN Healthcare (AMN) Q1 Earnings and Revenues Beat Estimates
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AMN Healthcare Services Inc. (AMN - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of $1.70, beating the Zacks Consensus Estimate by 25%. The bottom line also improved from 79 cents per share in the year-ago period.
Revenues
For the quarter, revenues of $885.9 million surpassed the Zacks Consensus Estimate by 9.2%. On a year-over-year basis, revenues also rose 47%.
Segment Details
In the first quarter of 2021, the Nurse and Allied Solutions segment’s revenues totaled $657 million, up 55% year over year. Travel nurse staffing revenues grew 74% year over year. Also, Allied division revenues rose 17% year over year.
The Physician and Leadership Solutions segment’s revenues totaled $141 million, up 2% year over year. This upside was on 9% growth in Locum tenens revenues.
The Technology and Workforce Solutions segment’s revenues totaled $89 million, up 120% year over year, driven by the February 2020 acquisition of Stratus Video, now known as AMN Language Services. The language interpretation business revenues came in at $41 million in the quarter while the vendor management systems business saw 91% year-over-year revenue growth.
Margin
In the first quarter, gross profit totaled $288.9 million, up 42.9% year over year. As a percentage of revenues, gross margin was 32.6%, contracting 93 basis point (bps).
Adjusted operating profit in the quarter was $127.7 million, up 128.6%. As a percentage of revenues, adjusted operating margin was 14.4%, up 51 bps.
AMN Healthcare Services Inc Price, Consensus and EPS Surprise
The company exited the first quarter with cash and cash equivalents of $78.3 million compared with $29.2 million at the end of the fourth quarter of 2020.
Net cash provided by operating activities came in at $39.1 million, down from $51.4 million a year ago.
Guidance
For the second quarter of 2021, AMN Healthcare expects revenues in the range of $810-$830 million. The Zacks Consensus Estimate for the same stands at $713.9 million.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to grow around 34-37% from the prior-year figure.
In the second quarter, the Technology and Workforce Solutions segment’s revenues are expected to grow almost 60-65% from the prior-year figure.The company projects second-quarter revenues at the Physician and Leadership Solutions segment to improve almost 20% from the prior-year figure.
Operating margin is expected at 10.5-11.0%% while gross margin is estimated within 32.4-32.8%.
Our Take
AMN Healthcare exited the first quarter on a strong note. The company gained from each of its core segments in the quarter. In fact, the Technology and Workforce Solutions segment attained record 84% year-over-year organic revenue growth in the period. Management is also 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.
However, contraction in gross margin is discouraging.
Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.
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AMN Healthcare (AMN) Q1 Earnings and Revenues Beat Estimates
AMN Healthcare Services Inc. (AMN - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of $1.70, beating the Zacks Consensus Estimate by 25%. The bottom line also improved from 79 cents per share in the year-ago period.
Revenues
For the quarter, revenues of $885.9 million surpassed the Zacks Consensus Estimate by 9.2%. On a year-over-year basis, revenues also rose 47%.
Segment Details
In the first quarter of 2021, the Nurse and Allied Solutions segment’s revenues totaled $657 million, up 55% year over year. Travel nurse staffing revenues grew 74% year over year. Also, Allied division revenues rose 17% year over year.
The Physician and Leadership Solutions segment’s revenues totaled $141 million, up 2% year over year. This upside was on 9% growth in Locum tenens revenues.
The Technology and Workforce Solutions segment’s revenues totaled $89 million, up 120% year over year, driven by the February 2020 acquisition of Stratus Video, now known as AMN Language Services. The language interpretation business revenues came in at $41 million in the quarter while the vendor management systems business saw 91% year-over-year revenue growth.
Margin
In the first quarter, gross profit totaled $288.9 million, up 42.9% year over year. As a percentage of revenues, gross margin was 32.6%, contracting 93 basis point (bps).
Adjusted operating profit in the quarter was $127.7 million, up 128.6%. As a percentage of revenues, adjusted operating margin was 14.4%, up 51 bps.
AMN Healthcare Services Inc Price, Consensus and EPS Surprise
AMN Healthcare Services Inc price-consensus-eps-surprise-chart | AMN Healthcare Services Inc Quote
Cash Position
The company exited the first quarter with cash and cash equivalents of $78.3 million compared with $29.2 million at the end of the fourth quarter of 2020.
Net cash provided by operating activities came in at $39.1 million, down from $51.4 million a year ago.
Guidance
For the second quarter of 2021, AMN Healthcare expects revenues in the range of $810-$830 million. The Zacks Consensus Estimate for the same stands at $713.9 million.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to grow around 34-37% from the prior-year figure.
In the second quarter, the Technology and Workforce Solutions segment’s revenues are expected to grow almost 60-65% from the prior-year figure.The company projects second-quarter revenues at the Physician and Leadership Solutions segment to improve almost 20% from the prior-year figure.
Operating margin is expected at 10.5-11.0%% while gross margin is estimated within 32.4-32.8%.
Our Take
AMN Healthcare exited the first quarter on a strong note. The company gained from each of its core segments in the quarter. In fact, the Technology and Workforce Solutions segment attained record 84% year-over-year organic revenue growth in the period. Management is also 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.
However, contraction in gross margin is discouraging.
Zacks Rank and Key Picks
AMN Healthcare currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Boston Scientific Corporation (BSX - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , each currently carrying a Zacks Rank #2 (Buy) .You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>