AMN Healthcare Services, Inc. (AMN Quick QuoteAMN - Free Report) delivered adjusted earnings per share (EPS) of 75 cents in the fourth quarter of 2024, which declined 43.2% year over year. However, the figure surpassed the Zacks Consensus Estimate by 44.2%.

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GAAP loss per share for the quarter was $4.90 against EPS of 33 cents in the year-ago period.

Full-year 2024 EPS was $3.31, down 59.7% from the comparable 2023 period. However, the metric surpassed the Zacks Consensus Estimate by 7.8%.

AMN’s Revenues in Detail

AMN Healthcare registered revenues of $734.7 million in the fourth quarter, down 10.2% year over year. However, the figure surpassed the Zacks Consensus Estimate by 5.7%.

Full-year 2024 revenues were $2.98 billion, reflecting a 21.3% decrease from the comparable 2023 period. The metric beat the Zacks Consensus Estimate by 1.4%.

Shares of this company gained nearly 5.5% in yesterday’s after-hours trading.

AMN Healthcare’s Segment Details

AMN Healthcare conducts its business via three reportable segments — Nurse and Allied Solutions, Physician and Leadership Solutions and Technology and Workforce Solutions.

In the fourth quarter of 2024, the Nurse and Allied Solutions segment’s revenues totaled $454.7 million, down 15.4% year over year. Travel nurse staffing revenues were down 35% year over year, whereas Allied revenues declined 9% year over year. This figure compares to our Nurse and Allied Solutions segment’s fourth-quarter projection of $418.8 million.

The Physician and Leadership Solutions segment’s revenues totaled $173.1 million, up 2.9% year over year on the back of a 10% uptick in locum tenens revenues (with growth coming from the MSDR acquisition). Interim leadership revenues were down 11% year over year. Physician and leadership search businesses saw a revenue decline of 32% year over year. This figure compares to our Physician and Leadership Solutions segment’s fourth-quarter projection of $173 million.

The Technology and Workforce Solutions segment’s revenues totaled $106.9 million, down 4.9% year over year. Language interpretation services business revenues came in at $76 million in the quarter (up 12% year over year), while the vendor management systems business saw a 26% year-over-year revenue decline to reach $23 million. This figure compares to our Technology and Workforce Solutions segment’s fourth-quarter projection of $102.3 million.

AMN’s Margin Trend

In the quarter under review, AMN Healthcare’s gross profit fell 16.1% year over year to $218.9 million. The gross margin contracted 208 basis points (bps) to 29.8%.

Selling, general & administrative expenses fell 14.3% year over year to $158.9 million.

Adjusted operating profit totaled $60.1 million, reflecting a 20.4% decline from the prior-year quarter. The adjusted operating margin in the fourth quarter contracted 105 bps to 8.2%.

AMN Healthcare’s Financial Position

AMN Healthcare exited 2024 with cash and cash equivalents of $10.6 million compared with $32.9 million at 2023-end. Total debt at the end of 2024 was $1.060 billion compared with $1,310 million at 2023-end.

Cumulative net cash provided by operating activities at the end of 2024 was $320.4 million compared with $372.2 million a year ago.

AMN’s Guidance

AMN Healthcare has provided its financial outlook for the first quarter of 2025.

For the first quarter, the company expects revenues in the range of $660 million-$680 million, reflecting a decline of 17-20% compared with the prior-year figure. The Zacks Consensus Estimate is pegged at $652.4 million.

With respect to the Nurse and Allied Solutions segment, the company expects revenues to decline 22-25% in the first quarter from the prior-year figure. The Technology and Workforce Solutions segment’s revenues are expected to decline 8-10% in the first quarter from the prior-year figure.

The company projects fourth-quarter revenues in the Physician and Leadership Solutions segment to decrease 9-11% from the prior-year figure.

Our Take

AMN Healthcare’s dismal top-line and bottom-line performances in fourth-quarter 2024 were disappointing. The decline in the majority of its segmental revenues during the reported quarter was worrying. The contraction of both margins raises our apprehension about the stock. AMN Healthcare expects to register a decline in its overall top line and all its segments in the first quarter of 2025, which is concerning. AMN continued to face high wage inflation, especially for highly qualified professionals. 

However, AMN Healthcare exited the quarter with better-than-expected results. The uptick in the Physician and Leadership Solutions segment’s revenues, locum tenens revenues and Language interpretation services revenues was impressive.

Management confirmed that AMN Healthcare continued to see stable bill rates for Nurse and Allied staffing, while bill rates have continued to rise in locum tenens. The company has also rolled out its next-generation in-person interpreter scheduling system in its language services business. These look promising for the stock.

AMN Healthcare’s Zacks Rank and Stocks to Consider

AMN currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. (CAH Quick QuoteCAH - Free Report) , ResMed Inc. (RMD Quick QuoteRMD - Free Report) and Boston Scientific Corporation (BSX Quick QuoteBSX - Free Report) .

Cardinal Health, carrying a Zacks Rank of 2 (Buy), reported second-quarter fiscal 2025 adjusted EPS of $1.93, beating the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health has a long-term estimated growth rate of 10.7%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, beating the Zacks Consensus Estimate by 5.7%. Revenues of $1.28 billion surpassed the Zacks Consensus Estimate by 1.6%. It currently carries a Zacks Rank #2.

ResMed has a long-term estimated growth rate of 16%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Boston Scientific reported fourth-quarter 2024 adjusted EPS of 70 cents, beating the Zacks Consensus Estimate by 7.7%. Revenues of $4.56 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.