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AMN Healthcare (AMN) Releases Solid Preliminary Q4 Revenues

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AMN Healthcare Services Inc. (AMN - Free Report) recently announced preliminary fourth-quarter 2020 revenue results.

Per the preliminary results, the company anticipates fourth-quarter revenues between $623 million and $628 million. The Zacks Consensus Estimate for the same is pegged at $586.5 million.

This projection is pegged above the revenue outlook range (released with the company’s third-quarter 2020 results on Nov 5, 2020) of $575-$585 million.

The above-mentioned preliminary results represent solid demand for the company’s services throughout all three segments, especially strength in the Nurse and Allied Solutions segment.



AMN Healthcare expects to release its fourth quarter and full-year 2020 results in February.

Highlights

The company has also reiterated fourth-quarter 2020 operating margin and adjusted EBITDA margin outlook.

Operating margin is projected to be at the high end of the prior-guided range of 7.6% to 8.1%, while adjusted EBITDA is expected to be at the high end of the previously issued band of 13.3-13.8%.

Our Take

AMN Healthcare’s fourth-quarter 2020 revenue projections highlight the company’s strength in delivering favorable results.

Apart from promising projections, the company’s unique Healthcare Managed Services Program (“MSP”) is helping it gain market traction. In third-quarter 2020, the company’s VMS business grew 2% year over year but declined 6% organically amid a slowing healthcare staffing market.

The company’s predictive analytics and scheduling division saw solid double-digit revenue growth as it continued to add new clients and expand existing accounts. The momentum might have continued in the to-be-reported quarter.

Price Performance

Notably, shares of the Zacks Rank #3 (Hold) company have gained 8.7% in the past three months, against the industry’s decline of 7.9%.

Key Picks

Some better-ranked stocks from the broader medical space are Becton, Dickinson and Company (BDX - Free Report) , Patterson Companies, Inc. (PDCO - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Becton, Dickinson has a projected long-term earnings growth rate of 9%.

Patterson Companies has an estimated long-term earnings growth rate of 9.6%.

IDEXX Laboratories has a projected long-term earnings growth rate of 15.8%.

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