AMN Healthcare Services (NYSE:AMN) Issues Quarterly Earnings Results

Key Points

• AMN Healthcare exceeded second-quarter expectations: Revenue rose 2.3% year over year to $673.2 million, while adjusted EPS reached $0.77 versus the $0.19 consensus estimate. Adjusted EBITDA increased 26% to $73 million, helped by higher-than-expected labor-disruption revenue and nonrecurring benefits.
• Travel nurse and Allied demand recovered meaningfully: The Nurse and Allied Solutions segment grew 11%, with travel nurse and Allied volumes up 6% and 7%, respectively. Management expects more than 10% volume growth in both businesses during the third quarter, though bill rates remain subdued.
• Investors remain cautious despite the strong quarter: Shares fell 7% as weaker Physician, Leadership, Technology and Workforce Solutions businesses, declining language-services pricing, and lower third-quarter margin guidance offset the earnings beat. Analysts’ average rating remains “Hold,” with an average price target of $29.

AMN Healthcare Services (NYSE:AMN - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.19 by $0.58, FiscalAI reports. The company had revenue of $673.24 million during the quarter, compared to analyst estimates of $628.39 million. AMN Healthcare Services had a positive return on equity of 18.01% and a negative net margin of 0.95%.The firm's revenue was up 2.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.30 earnings per share.

Here are the key takeaways from AMN Healthcare Services' conference call:

• Second-quarter results exceeded expectations: Revenue rose 2% year over year to $673 million, 6% above the high end of guidance, while adjusted EBITDA increased 26% to $73 million and adjusted EPS rose to $0.77 from $0.30. Results benefited from $25 million of labor-disruption revenue versus the $10 million assumed in guidance, including approximately $27 million of favorable nonrecurring items.
• Nurse and Allied Solutions showed a meaningful demand recovery. Segment revenue grew 11%, with travel nurse volume up 6% and Allied volume up 7%; travel nurse orders were up about 40% year over year in early August. The company expects more than 10% volume growth for both businesses in the third quarter, although bill rates have not yet meaningfully increased.
• AMN strengthened its financial flexibility, ending the quarter with $362 million in cash, $750 million of debt, and 1.5x leverage. Management said the balance sheet enables modest share repurchases and potentially more active participation in industry consolidation, while two small acquisitions expanded its leadership assessment and AI-enabled language-services offerings.
• Several businesses remain under pressure: Physician and Leadership Solutions revenue declined 6% and Technology and Workforce Solutions revenue fell 15% year over year. Language-services pricing dropped 8% and is expected to remain a headwind through 2026, while locums is undergoing a technology and process transformation that management does not expect to restore year-over-year growth until 2027.
• Third-quarter guidance calls for consolidated revenue of $640 million-$655 million and adjusted EBITDA margins of 6.5%-7%, below the reported second-quarter margin because of nonrecurring benefits and a less favorable business mix. International nursing growth in 2027 may also be constrained by embassy appointment backlogs despite faster visa cutoff-date progress.

AMN Healthcare Services Stock Down 7.0%

AMN Healthcare Services stock traded down $2.29 during midday trading on Thursday, hitting $30.50. 1,237,825 shares of the stock were exchanged, compared to its average volume of 724,875. AMN Healthcare Services has a 1 year low of $14.86 and a 1 year high of $36.27. The firm has a market cap of $1.18 billion, a P/E ratio of -35.06, a P/E/G ratio of 0.75 and a beta of 0.40. The company has a debt-to-equity ratio of 1.04, a current ratio of 1.09 and a quick ratio of 1.09. The company has a 50 day moving average price of $32.37 and a two-hundred day moving average price of $25.01.

Insiders Place Their Bets

In other AMN Healthcare Services news, Director Mark G. Foletta sold 3,681 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $31.07, for a total value of $114,368.67. Following the completion of the transaction, the director directly owned 17,917 shares of the company's stock, valued at $556,681.19. This represents a 17.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.07% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Tower Research Capital LLC TRC boosted its holdings in AMN Healthcare Services by 49.2% in the second quarter. Tower Research Capital LLC TRC now owns 3,093 shares of the company's stock valued at $64,000 after acquiring an additional 1,020 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in AMN Healthcare Services by 2.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 42,938 shares of the company's stock worth $1,050,000 after purchasing an additional 1,153 shares during the period. Swiss National Bank raised its holdings in AMN Healthcare Services by 1.9% during the 4th quarter. Swiss National Bank now owns 75,600 shares of the company's stock worth $1,191,000 after purchasing an additional 1,400 shares during the last quarter. Creative Planning raised its holdings in AMN Healthcare Services by 11.0% during the 3rd quarter. Creative Planning now owns 14,664 shares of the company's stock worth $284,000 after purchasing an additional 1,451 shares during the last quarter. Finally, Orion Porfolio Solutions LLC lifted its position in AMN Healthcare Services by 6.1% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 29,339 shares of the company's stock valued at $606,000 after purchasing an additional 1,679 shares during the period. Hedge funds and other institutional investors own 99.23% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on AMN. UBS Group increased their price target on AMN Healthcare Services from $19.50 to $32.00 and gave the company a "neutral" rating in a report on Wednesday, May 13th. Wall Street Zen cut AMN Healthcare Services from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. Citizens Jmp reaffirmed a "market outperform" rating and issued a $36.00 target price on shares of AMN Healthcare Services in a research report on Tuesday, June 23rd. Zacks Research lowered AMN Healthcare Services from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 20th. Finally, Robert W. Baird raised their target price on AMN Healthcare Services from $23.00 to $26.00 and gave the company a "neutral" rating in a report on Monday, May 11th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, AMN Healthcare Services has an average rating of "Hold" and an average target price of $29.00.

About AMN Healthcare Services

AMN Healthcare Services, Inc NYSE: AMN is a leading provider of healthcare workforce solutions in the United States. The company specializes in staffing and recruitment services for a broad range of clinical and allied health professionals, including travel nurses, permanent placement of nursing staff, locum tenens physicians, and allied health personnel. In addition to direct staffing, AMN Healthcare offers comprehensive workforce management solutions such as vendor management systems (VMS), recruitment process outsourcing (RPO), and compliance and credentialing services through its technology platforms.

Founded in 1985 as American Mobile Nurses, the company rebranded to AMN Healthcare in 2010 to reflect its expanding portfolio of services.

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