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In the last-reported quarter, AMN’s earnings of $3.31 per share surpassed the Zacks Consensus Estimate by 11.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average being 15.7%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Over the past few months, AMN Healthcare has been registering solid demand for healthcare staffing on the back of continued labor shortages. The 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.
On the second-quarter 2022 earnings call in August, AMN Healthcare’s management had confirmed that its Nurse and Allied Solutions segment had registered a revenue surge, driven by robust performances by its Travel Nurse Staffing and Allied Staffing businesses. The company also confirmed witnessing a significant demand uptick in the second quarter, courtesy of the persistent vacancies and labor shortages faced by healthcare organizations. This trend is likely to have continued in the third quarter as well, thereby pushing up the segmental revenues. The company expects this segment to be up approximately 23-26% from the year-ago reported level, primarily driven by a higher number of clinicians on assignment. This compares to our estimate of a 25% year-over-year uptick for the segment.
AMN Healthcare Services Inc Price and EPS Surprise
In the second quarter of 2022, AMN Healthcare had witnessed a solid uptick in its Physician and Leadership Solutions segment. Management confirmed on the last earnings call that demand has been strong across all specialties, with notable growth in its primary care telehealth placements with clients. Continued strength in Interim leadership, and physician and executive search is likely to have been witnessed in the to-be-reported quarter. AMN Healthcare has also been partnering with healthcare organizations on large multi-search long-term engagements. These developments are likely to have meaningfully contributed to third-quarter segmental revenues. The company expects this segment to be up approximately 15% from the year-ago reported level. We expect this segment to be up by 14.8% in the third quarter.
In the second quarter of 2022, AMN Healthcare had also recorded a solid improvement in its Technology and Workforce Solutions segment on the back of a strong vendor management systems (VMS) technology business. Robust results from the segment’s Language Services and Recruitment Process Outsourcing business had also driven the revenues. This momentum is likely to have continued in the third quarter, thereby contributing to the segment’s revenues. The company expects this segment to be up approximately 30% from the year-ago reported level as the VMS revenue moderates along with market-wide trends. This compares to our projection of a year-over-year improvement of 29.3%.
AMN Healthcare's continued strength in digital health capabilities with its AMN Passport and AMN Cares bodes well. The company has also been making significant investments in its digital platforms and tech-enabled solutions. Also, AMN Healthcare’s buyout of Connetics USA to expand its International Staffing business (in May) raised our optimism about the stock.
However, management’s expectations of a sequential fall in overall revenues in the third quarter, primarily due to the expected travel nurse and VMS bill rate reductions, raises our apprehension about the stock.
The Estimate Picture
For third-quarter 2022, the Zacks Consensus Estimate of $1.09 billion for total revenues calls for an improvement of 24.7% from the prior-year reported figure.
This compares to our revenue estimate of $1.09 billion for the quarter, in line with the ZCE.
The consensus estimate for adjusted earnings per share (EPS) is pegged at $2.33, indicating a jump of 34.7% from the prior-year reported number.
We estimate the third-quarter adjusted EPS to be $2.00.
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 sports a Zacks Rank #1.
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.
National Vision Holdings, Inc. (EYE - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank of 2. EYE has an estimated long-term growth rate of 22.2%.
Lantheus Holdings, Inc. (LNTH - Free Report) has an Earnings ESP of +3.03% and is a Zacks #2 Rank stock. LNTH has an estimated growth rate of 620.4% for 2022.
Lantheus Holdings’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 54.6%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +21.62% and carries a Zacks Rank of 2 at present. GDRX has an estimated long-term growth rate of 16.4%.
GoodRx’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 19.4%.
Image: Bigstock
AMN Healthcare (AMN) to Post Q3 Earnings: What's in the Cards?
AMN Healthcare Services, Inc. (AMN - Free Report) is scheduled to release third-quarter 2022 results on Nov 3, after market close.
In the last-reported quarter, AMN’s earnings of $3.31 per share surpassed the Zacks Consensus Estimate by 11.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average being 15.7%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Over the past few months, AMN Healthcare has been registering solid demand for healthcare staffing on the back of continued labor shortages. The 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.
On the second-quarter 2022 earnings call in August, AMN Healthcare’s management had confirmed that its Nurse and Allied Solutions segment had registered a revenue surge, driven by robust performances by its Travel Nurse Staffing and Allied Staffing businesses. The company also confirmed witnessing a significant demand uptick in the second quarter, courtesy of the persistent vacancies and labor shortages faced by healthcare organizations. This trend is likely to have continued in the third quarter as well, thereby pushing up the segmental revenues. The company expects this segment to be up approximately 23-26% from the year-ago reported level, primarily driven by a higher number of clinicians on assignment. This compares to our estimate of a 25% year-over-year uptick for the segment.
AMN Healthcare Services Inc Price and EPS Surprise
AMN Healthcare Services Inc price-eps-surprise | AMN Healthcare Services Inc Quote
In the second quarter of 2022, AMN Healthcare had witnessed a solid uptick in its Physician and Leadership Solutions segment. Management confirmed on the last earnings call that demand has been strong across all specialties, with notable growth in its primary care telehealth placements with clients. Continued strength in Interim leadership, and physician and executive search is likely to have been witnessed in the to-be-reported quarter. AMN Healthcare has also been partnering with healthcare organizations on large multi-search long-term engagements. These developments are likely to have meaningfully contributed to third-quarter segmental revenues. The company expects this segment to be up approximately 15% from the year-ago reported level. We expect this segment to be up by 14.8% in the third quarter.
In the second quarter of 2022, AMN Healthcare had also recorded a solid improvement in its Technology and Workforce Solutions segment on the back of a strong vendor management systems (VMS) technology business. Robust results from the segment’s Language Services and Recruitment Process Outsourcing business had also driven the revenues. This momentum is likely to have continued in the third quarter, thereby contributing to the segment’s revenues. The company expects this segment to be up approximately 30% from the year-ago reported level as the VMS revenue moderates along with market-wide trends. This compares to our projection of a year-over-year improvement of 29.3%.
AMN Healthcare's continued strength in digital health capabilities with its AMN Passport and AMN Cares bodes well. The company has also been making significant investments in its digital platforms and tech-enabled solutions. Also, AMN Healthcare’s buyout of Connetics USA to expand its International Staffing business (in May) raised our optimism about the stock.
However, management’s expectations of a sequential fall in overall revenues in the third quarter, primarily due to the expected travel nurse and VMS bill rate reductions, raises our apprehension about the stock.
The Estimate Picture
For third-quarter 2022, the Zacks Consensus Estimate of $1.09 billion for total revenues calls for an improvement of 24.7% from the prior-year reported figure.
This compares to our revenue estimate of $1.09 billion for the quarter, in line with the ZCE.
The consensus estimate for adjusted earnings per share (EPS) is pegged at $2.33, indicating a jump of 34.7% from the prior-year reported number.
We estimate the third-quarter adjusted EPS to be $2.00.
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 sports a Zacks Rank #1.
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.
National Vision Holdings, Inc. (EYE - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank of 2. EYE has an estimated long-term growth rate of 22.2%.
National Vision’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 246.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lantheus Holdings, Inc. (LNTH - Free Report) has an Earnings ESP of +3.03% and is a Zacks #2 Rank stock. LNTH has an estimated growth rate of 620.4% for 2022.
Lantheus Holdings’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 54.6%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +21.62% and carries a Zacks Rank of 2 at present. GDRX has an estimated long-term growth rate of 16.4%.
GoodRx’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 19.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.