AMN Healthcare Services, Inc. AMN still cannot find a foothold in the healthcare personnel market. This Zacks Rank #5 (Strong Sell) is expected to see earnings decline 62.4% this year, with no recovery expected in 2025.
AMN Healthcare provides end-to-end talent solutions to healthcare organizations across the United States. Its services include direct staffing, vendor-neutral and managed service programs, clinical and interim healthcare managers, temporary staffing, permanent employment, executive search, vendor management systems, recruitment process outsourcing, predictive modeling, language services, revenue cycle solutions and other services.
Customers include acute care hospitals, community health centers and clinics, physician groups, retail and urgent care centers, home hospitals, schools and other healthcare facilities.
On November 7, 2024, AMN Healthcare Services reported Q3 2024 earnings, beating the Zacks Consensus Estimate by $0.03. Earnings came in at $0.61 compared to the consensus of $0.58.
That’s especially impressive because AMN Healthcare Services has a perfect five-year history of earnings surprises. Few companies made it through the COVID pandemic unscathed in the performance search category, especially one so intricately involved in healthcare.
But even thought it beat; the company still hasn’t seen a bottom in the post-COVID correction. The demand for medical professionals, especially nurses, was at an all-time high during the pandemic. But conditions in the industry remain challenging.
Revenue was down 19 percent to $687.5 million and also down 7 percent from the previous quarter, but the company said this was better than expected.
The big hit came in the Nursing and Allied Solutions segment, which fell 30 percent year-over-year to $399 million. It was also 10 percent lower than in the previous quarter.
During the pandemic, the number of personnel of the busy travel nurse decreased by 37% year-on-year and by 12% compared to the previous quarter. The turnover of the allied division also decreased by 16 percent compared to the previous year.
AMN Healthcare has $31 million in cash and bank balances as of September 30, 2024. It also had total debt of $1.135 billion.
The company’s guidance for the fourth quarter was not encouraging, that the bottom was coming soon.
Analysts are bearish. 3 have cut their earnings estimates for 2024 and 4 have cut their earnings estimates for 2025 in the last 30 days.
The Zacks Consensus Estimate for 2024 has fallen to $3.09 from $3.15 in that period. That’s a 62.4% decline from last year’s $8.21.
The year 2025 is also dark. The Zacks Consensus has dropped to $1.92 from $2.93 in the last month. This is the second profit drop of 38.1 percent.
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