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AMN Healthcare (AMN) Q4 Earnings and Revenues Beat Estimates

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AMN Healthcare Services Inc. (AMN - Free Report) reported fourth-quarter 2020 adjusted earnings per share (EPS) of $1, beating the Zacks Consensus Estimate of 89 cents by 12.4%.The bottom line also improved 17.6% year over year.

For 2020, adjusted EPS was $3.43, beating the Zacks Consensus Estimate by 3%. The figure also grew 7.9% year over year.

Revenues

For the fourth quarter, revenues of $631.3 million surpassed the Zacks Consensus Estimate by 0.9%. On a year-over-year basis, revenues rose 7.8%.

For 2020, revenues came in at $2.39 billion, in line with the Zacks Consensus Estimate. On a year-over-year basis, revenues grew 7.7%.

Segment Details

In the fourth quarter of 2020, the Nurse and Allied Solutions segment’s revenues totaled $448 million, up 6% year over year.Travel nurse staffing revenues grew 23% year over year. However, Allied division revenues fell 13% year over year.

The Physician and Leadership Solutions segment’s revenues totaled $111 million, down 20% year over year. This downside was due to a 12% decline in Locum tenens revenues,  a 29% drop in Interim leadership revenues and a 33% fall in physician and leadership search businesses.

The Technology and Workforce Solutions segment’s revenues totaled $72 million, up 192% year over year. The language interpretation business revenues grew 29% year over year.

Margin

In the fourth quarter, gross profit totaled $207.5 million, up 5.3% year over year. As a percentage of revenues, gross margin was 32.9%, contracting 71 basis point (bps).

Adjusted operating profit in the quarter was $52.3 million, down 18.2%. As a percentage of revenues, adjusted operating margin was 8.3%, down  261 bps.

 

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

 

Cash Position

The company exited the fourth quarter with cash and cash equivalents of $29.2 million compared with $82.9 million at the end of the year-ago period.

Cumulative net cash provided by operating activities came in at $256.8 million, up from $224.9 million a year ago.

Guidance

For the first quarter of 2021, AMN Healthcare expects revenues in the range of $800-$820 million. The Zacks Consensus Estimate for the same stands at $606 million.

With respect to the Nurse and Allied Solutions segment, the company expects revenues to grow around 40% from the prior-year figure.

In the fourth quarter, the Technology and Workforce Solutions segment’s revenues are expected to fall almost 5% from the prior-year figure.The company projects fourth-quarter revenues at the Physician and Leadership Solutions segment to improve almost 100% from the prior-year figure.

Operating margin is expected at 10.3-10.7% while gross margin is estimated within 31.5-32%

Our Take

AMN Healthcare exited the fourth quarter on a strong note. The company gained from both the Technology and Workforce Solutions and the Nurse and Allied Solutions segments in the quarter. In fact, the Technology and Workforce Solutions segment attained record 32% year-over-year organic revenue growth in the fourth quarter. Management is upbeat about the latest Stratus Video and Advanced Medical buyouts, which are expected to expand its travel as well as school therapy and travel nurse staffing capabilities.

However, a revenue decline at the Physician and Leadership Solutions segment is concerning. Contraction in both margins is also discouraging.

Zacks Rank and Key Picks

AMN Healthcare currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that already announced quarterly results are Hologic, Inc. (HOLX - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) each  presently carrying a Zacks Rank#2 (Buy).You can see the complete list of today’s Zacks #1 Rank  (Strong Buy) stocks here.

Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.

Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.

AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of a couple of cents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.

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