Back to top

Image: Bigstock

AMN Healthcare (AMN) Q4 Earnings and Revenues Top Estimates

Read MoreHide Full Article

AMN Healthcare Services Inc. (AMN - Free Report) reported fourth-quarter 2019 adjusted earnings per share (EPS) of 85 cents, which outpaced the Zacks Consensus Estimate of 74 cents. Also, the bottom line increased 4.9% year over year.

The Zacks Rank #2 (Buy) company reported revenues worth $586.9 million, which surpassed the Zacks Consensus Estimate of $575.5 million. On a year-over-year basis, revenues increased 11%.

2019 at a Glance

In 2019, revenues amounted to $2.22 billion, which beat the Zacks Consensus Estimate of $2.21 billon. The figure increased 4% from 2018 figure.

Adjusted EPS was $3.18, ahead of the Zacks Consensus Estimate of $3.07. The metric declined 3.3% from 2018 levels.

Nurse and Allied Solutions revenues amounted to $1.42 billion (63.9% of net sales). Locum Tenens revenues were $0.3 million (14.6%) and Other Work Force Solutions revenues were $0.5 million (21.5%).

Segment Details

Nurse and Allied Solutions

In the fourth quarter of 2019, the segment’s revenues totaled $388.8 million, up 18.1% year over year.

Locum Tenens Solutions

The segment’s revenues amounted to $77.9 million, down 4.8% from the prior-year quarter’s figure.

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

 

Other Workforce Solutions

In the quarter under review, the segment’s revenues came in at $120.2 million, up 2.3% year over year.

Margin

In the third quarter, gross profit totaled $197.1 million, up 14.3% year over year. As a percentage of revenues, gross margin was 33.6%, which expanded 100 basis points (bps).

Total operating expenses in the quarter were $150.2 million, up 22.8% year over year. Operating income in the quarter was $27.5 million, down 22.8%. As a percentage of revenues, operating margin was 4.7%, down 200 bps.

Guidance

For the first quarter of 2020, AMN Healthcare expects revenues in the range of $598-$605 million. The Zacks Consensus Estimate is pegged at $591.5 million.

Gross margin is expected in the range of 33.3-33.5%, while operating margin is projected between 6.8% and 7%.

Our Take

AMN Healthcare exited the fourth quarter on a solid note. The company gained from its core Nurse and Allied Solutions and Other Workforce Solutions units 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. Expansion in gross margin is also encouraging.

However, the company’s Locum Tenens Solutions has been witnessing lackluster performance for a couple of quarters. Contraction in operating margin adds to its woes.

Earnings of Other MedTech Majors at a Glance

Other top-ranked stocks, which reported solid results this earnings season, are Stryker Corporation (SYK - Free Report) , Accuray Incorporated (ARAY - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) .

Stryker delivered fourth-quarter 2019 adjusted EPS of $2.49, which outpaced the Zacks Consensus Estimate by 1.2%. Fourth-quarter revenues of $4.13 billion surpassed the Zacks Consensus Estimate by 0.7%. The company carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Accuray reported second-quarter fiscal 2020 adjusted EPS of a penny, comparing favorably with the Zacks Consensus Estimate of a loss of 7 cents. Net revenues of $98.8 million outpaced the Zacks Consensus Estimate by 0.3%. The company sports a Zacks Rank #1.

IDEXX Laboratories reported fourth-quarter 2019 adjusted EPS of $1.04, which beat the Zacks Consensus Estimate of 91 cents by 14.3%. Revenues amounted to $605.4 million, which surpassed the Zacks Consensus Estimate by 0.9%. The company carries a Zacks Rank of 2.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in