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AMN Healthcare (AMN) to Report Q1 Earnings: What's in Store?

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AMN Healthcare Services, Inc. (AMN - Free Report) is scheduled to release first-quarter 2022 results on May 5, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 14.3%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 20%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $1.50 billion, suggesting growth of 69% from the year-ago reported figure. The consensus mark for earnings stands at $3.25 per share, indicating an improvement of 91.2% from the prior-year quarter.

Factors to Note

Per fourth-quarter 2021 earnings call, demand for travel nurses reached new highs on the back of extreme shortages of clinicians, higher healthcare utilization and record-high turnover in vacancies. Consequently, travel nurse volume grew 21% sequentially along with a 38% increase in bill rates. Demand for allied professionals doubled over that same time period, while the same for Physicians, temporary and permanent roles witnessed new highs. This trend is likely to have continued in the first quarter as well.

All three of AMN Healthcare's reportable segments witnessed robust performances in the fourth quarter of 2021. The Nurse and Allied Solutions segment's revenues soared 142% year over year. Travel nurse staffing revenues grew 136% year over year while Allied division revenues rose 82% year over year. The Physician and Leadership Solutions segment's revenues totaled $164 million, up 47% year over year. This upside can be attributed to 46% growth in Locum tenens revenues. The momentum may have continued in the to-be-reported quarter.

Per the fourth-quarter 2021 earnings call, revenues for physician and leadership solutions are projected to grow approximately 18% year over year, with double-digit growth across all businesses in the first quarter of 2022. In the first quarter of 2022, market trends continue to be strong, and Technology and Workforce Solutions' revenues are expected to be up about 55% on a year-over-year basis.

AMN Healthcare's strength in digital health capabilities with its AMN Passport and AMN Cares bodes well. While AMN Passport is the company's mobile app for healthcare experts, AMN Cares is a telehealth platform helping care teams to interface with employees or patients at home. The company expanded its scalable VMS solution, enabling a wide array of health care facilities to quickly staff and manage their entire range of contingent talent.

These developments are likely to have favored the company's first-quarter results.

What Our Quantitative Model Suggests

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will 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 carries a Zacks Rank #2.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Vertex Pharmaceuticals Incorporated (VRTX - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.

Vertex Pharmaceutical's long-term earnings growth rate is estimated at 11.5%. The company's earnings yield of 5.3% compares favorably with the industry's (31.5%).

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Haemonetics' long-term earnings growth rate is estimated at 10%. The company's earnings yield of 5.5% compares favorably with the industry's 0.9%.

Meridian Bioscience, Inc. (VIVO - Free Report) has an Earnings ESP of +26.32% and a Zacks Rank of 2.

Meridian Bioscience's historical earnings growth rate stands at 16.3%. The company's earnings yield of 5.4% compares favorably with the industry's 0.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.