Back to top

Image: Bigstock

AMN Healthcare (AMN) to Report Q2 Earnings: What to Expect?

Read MoreHide Full Article

AMN Healthcare Services Inc. (AMN - Free Report) is scheduled to report second-quarter 2021 results on Aug 5, after the closing bell.

In the last-reported quarter, the company’s earnings of $1.70 per share surpassed the Zacks Consensus Estimate by 25%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 21.99%, on average.

Let’s see how things have shaped up prior to this announcement.

Factors to Note

Over the past few months, AMN Healthcare has registered a huge surge in demand for healthcare labor, thus significantly driving up revenues of the company’s Nurse and Allied Solutions business arm. The company has also been witnessing a significant uptick in its Travel Nurse Staffing revenues on the back of higher volume bill rates and hours worked. Given the continued pandemic-led higher demand for critically needed healthcare professionals, AMN Healthcare’s second-quarter revenues are expected to reflect a significant boost.

The company, over the past few months, has witnessed a significant disruption in its Physician and Leadership Solutions business of the broader Nurse and Allied Solutions arm. However, the company, during its first-quarter earnings call in April, had confirmed that there has been a significant business recovery in this area. This momentum is likely to have continued during the to-be-reported quarter as well, thus driving revenues.

With continued vaccine rollout and gradual ebbing of the pandemic, the company has been witnessing an increase in non-COVID-19 patient volumes, high job vacancy rates and heightened burnout. These factors are creating a significant need for the company’s staffing services, which are likely to further boost AMN Healthcare’s performance in the to-be-reported quarter.

AMN Healthcare has also been recording a considerable uptick in revenues from its Allied Staffing services on the back of demand surge for imaging, respiratory and lab staffing. The company, during its earnings call in April, had confirmed that it has recorded improved bookings in the segment through said month. The company expects the momentum to continue in the second quarter as well, thereby contributing to the revenues.

The Estimate Picture

For second-quarter 2021, the Zacks Consensus Estimate of $829.4 million for total revenues implies an uptick of 36.3% from the prior-year quarter’s reported figure.

The consensus estimate for earnings per share is pegged at $1.47, indicating a surge of 77.1% from the prior-year period’s reported number.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:

Earnings ESP: AMN Healthcare has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina, Inc. (ILMN - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank of 2, at present.

Ironwood Pharmaceuticals, Inc. (IRWD - Free Report) has an Earnings ESP of +11.11% and is a Zacks #2 Ranked stock.