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In the last reported quarter, AMN’s earnings of $3.49 per share surpassed the Zacks Consensus Estimate by 7.4%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average being 15.6%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Over the past few months, AMN Healthcare has been steadily delivering large-scale managed services programs (MSP). The company’s pipeline for healthcare organizations seeking MSP/VMS (vendor management systems) and other workforce solutions looks encouraging. Growing demand for the company’s comprehensive solutions to address the recruitment and staffing challenges is likely to have significantly driven its overall top line in the to-be-reported quarter.
During the first-quarter 2022 earnings call in May, AMN Healthcare’s management had confirmed that it expects its Nurse and Allied segment revenues to grow approximately 70% in the second quarter from the year-ago reported figure. This expectation stemmed from the company’s observation of a more normalized demand level in the first quarter, which was still quite higher than the pre-pandemic similar period. This indicated that compensation expectations might have declined, resulting in reduced bill rates.
AMN Healthcare Services, Inc. Price and EPS Surprise
In the sequentially-last reported quarter, AMN Healthcare had witnessed a solid uptick in its Physician and Leadership solutions segment. Management confirmed on the last earnings call that new physician searches and the pipeline for mid-level and executive search remained strong, driven by multi-search opportunities from larger clients. This momentum is likely to have continued in the second quarter, thereby contributing to segmental revenues.
In the first quarter of 2022, AMN Healthcare had also recorded a solid improvement in its Technology and Workforce Solutions segment, partly aided by strength in its Language Services and Recruitment Process Outsourcing business. The company expects this segment to be up approximately 45% from the year-ago reported level on the back of continued solid demand from clients for more diversified solutions observed during the first quarter.
AMN Healthcare's strength in digital health capabilities with its AMN Passport and AMN Cares bodes well. The company also confirmed during the last-reported quarter’s earnings call that it has been making significant investments in its digital platforms and tech-enabled solutions. Also, in May, AMN Healthcare acquired Connetics USA. The buyout is expected to expand its International Staffing business. These developments raise our optimism on the stock.
The Estimate Picture
For second-quarter 2022, the Zacks Consensus Estimate of $1.36 billion for total revenues calls for an improvement of 58.8% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $2.96, indicating a surge of 80.5% from the prior-year 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. This is not the case here, as you can see below.
Earnings ESP: AMN Healthcare has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
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.
Centessa Pharmaceuticals plc (CNTA - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank of 2. CNTA has an estimated growth rate of 20.6% for 2023.
Centessa Pharmaceuticals’ earnings surpassed estimates in two of the trailing four quarters and lagged the same in the other two, with the average being 6.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Rank stock. STE has an estimated growth rate of 9.9% for fiscal 2023.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +20.00% and is a Zacks #2 Ranked stock. GDRX has an estimated long-term growth rate of 16.6%.
GoodRx Holdings’ earnings surpassed estimates in two of the trailing four quarters, lagged the same in one and broke even in one, the average being 6.9%.
Image: Bigstock
AMN Healthcare (AMN) to Post Q2 Earnings: What's in the Cards?
AMN Healthcare Services, Inc. (AMN - Free Report) is scheduled to release second-quarter 2022 results on Aug 4, after market close.
In the last reported quarter, AMN’s earnings of $3.49 per share surpassed the Zacks Consensus Estimate by 7.4%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average being 15.6%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Over the past few months, AMN Healthcare has been steadily delivering large-scale managed services programs (MSP). The company’s pipeline for healthcare organizations seeking MSP/VMS (vendor management systems) and other workforce solutions looks encouraging. Growing demand for the company’s comprehensive solutions to address the recruitment and staffing challenges is likely to have significantly driven its overall top line in the to-be-reported quarter.
During the first-quarter 2022 earnings call in May, AMN Healthcare’s management had confirmed that it expects its Nurse and Allied segment revenues to grow approximately 70% in the second quarter from the year-ago reported figure. This expectation stemmed from the company’s observation of a more normalized demand level in the first quarter, which was still quite higher than the pre-pandemic similar period. This indicated that compensation expectations might have declined, resulting in reduced bill rates.
AMN Healthcare Services, Inc. Price and EPS Surprise
AMN Healthcare Services, Inc. price-eps-surprise | AMN Healthcare Services, Inc. Quote
In the sequentially-last reported quarter, AMN Healthcare had witnessed a solid uptick in its Physician and Leadership solutions segment. Management confirmed on the last earnings call that new physician searches and the pipeline for mid-level and executive search remained strong, driven by multi-search opportunities from larger clients. This momentum is likely to have continued in the second quarter, thereby contributing to segmental revenues.
In the first quarter of 2022, AMN Healthcare had also recorded a solid improvement in its Technology and Workforce Solutions segment, partly aided by strength in its Language Services and Recruitment Process Outsourcing business. The company expects this segment to be up approximately 45% from the year-ago reported level on the back of continued solid demand from clients for more diversified solutions observed during the first quarter.
AMN Healthcare's strength in digital health capabilities with its AMN Passport and AMN Cares bodes well. The company also confirmed during the last-reported quarter’s earnings call that it has been making significant investments in its digital platforms and tech-enabled solutions. Also, in May, AMN Healthcare acquired Connetics USA. The buyout is expected to expand its International Staffing business. These developments raise our optimism on the stock.
The Estimate Picture
For second-quarter 2022, the Zacks Consensus Estimate of $1.36 billion for total revenues calls for an improvement of 58.8% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $2.96, indicating a surge of 80.5% from the prior-year 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. This is not the case here, as you can see below.
Earnings ESP: AMN Healthcare has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
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.
Centessa Pharmaceuticals plc (CNTA - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank of 2. CNTA has an estimated growth rate of 20.6% for 2023.
Centessa Pharmaceuticals’ earnings surpassed estimates in two of the trailing four quarters and lagged the same in the other two, with the average being 6.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Rank stock. STE has an estimated growth rate of 9.9% for fiscal 2023.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +20.00% and is a Zacks #2 Ranked stock. GDRX has an estimated long-term growth rate of 16.6%.
GoodRx Holdings’ earnings surpassed estimates in two of the trailing four quarters, lagged the same in one and broke even in one, the average being 6.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.