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AMN Stock Gains Following Q1 Earnings & Revenue Beat, Margins Down
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AMN Healthcare Services, Inc. (AMN - Free Report) delivered adjusted earnings per share (EPS) of 45 cents in the first quarter of 2025, which declined 53.6% year over year. However, the figure surpassed the Zacks Consensus Estimate by 136.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
GAAP loss per share for the quarter was 3 cents against EPS of 45 cents in the year-ago period.
AMN’s Revenues in Detail
AMN Healthcare registered revenues of $689.5 million in the first quarter, down 16% year over year. However, the figure surpassed the Zacks Consensus Estimate by 2.7%.
Shares of this company gained nearly 9.2% 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 first quarter of 2025, the Nurse and Allied Solutions segment’s revenues totaled $413.3 million, down 20.4% year over year. Travel nurse staffing revenues were down 36% year over year, whereas Allied revenues declined 13% year over year. Labor disruption events contributed $39 million in revenues in the quarter. This figure compares to our Nurse and Allied Solutions segment’s first-quarter projection of $394.8 million.
The Physician and Leadership Solutions segment’s revenues totaled $174.1 million, down 7.8% year over year. Locum tenens revenues were $141 million in the quarter, down 3% year over year. Interim leadership revenues were down 21% year over year. Physician and leadership search businesses saw a revenue decline of 29% year over year. This figure compares to our Physician and Leadership Solutions segment’s first-quarter projection of $171.7 million.
The Technology and Workforce Solutions segment’s revenues totaled $102.2 million, down 9.4% year over year. Language interpretation services business revenues came in at $75 million in the quarter (up 5% year over year), while the vendor management systems business saw a 33% year-over-year revenue decline to reach $19 million. This figure compares to our Technology and Workforce Solutions segment’s first-quarter projection of $103.6 million.
AMN Healthcare Services Inc Price, Consensus and EPS Surprise
In the quarter under review, AMN Healthcare’s gross profit fell 23.1% year over year to $198.1 million. The gross margin contracted 264 basis points (bps) to 28.7%.
Selling, general & administrative expenses fell 15.5% year over year to $147.7 million.
Adjusted operating profit totaled $50.4 million, reflecting a 39% decline from the prior-year quarter. The adjusted operating margin in the first quarter contracted 276 bps to 7.3%.
AMN Healthcare’s Financial Position
AMN Healthcare exited first-quarter 2025 with cash and cash equivalents of $55.8 million compared with $10.6 million at 2024-end. Total debt at the end of first-quarter 2025 was $1 billion compared with $1.060 billion at 2024-end.
Net cash provided by operating activities at the end of first-quarter 2025 was $92.7 million compared with $81.4 million a year ago.
AMN’s Guidance
AMN Healthcare has provided its financial outlook for the second quarter of 2025.
For the second quarter, the company expects revenues in the range of $645 million-$660 million, reflecting a decline of 11-13% compared with the prior-year figure. The Zacks Consensus Estimate is pegged at $644.3 million.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to decline 14-17% in the second quarter from the prior-year figure. The Technology and Workforce Solutions segment’s revenues are expected to decline 8-10% in the second quarter from the prior-year figure.
The company projects second-quarter revenues in the Physician and Leadership Solutions segment to decrease 5-7% from the prior-year figure.
Our Take on AMN Healthcare
AMN Healthcare’s dismal top-line and bottom-line performances in first-quarter 2025 were disappointing. The decline in all its segmental revenues during the reported quarter was worrying. The contraction of both margins does not bode well. AMN Healthcare expects to register a decline in its overall top line and all its segments in the second quarter of 2025, which is concerning. Also, the uncertainties stemming from tariff impacts are keeping the company’s clients cost-conscious, which raises our apprehension about the stock.
However, AMN Healthcare exited the quarter with better-than-expected results. The uptick in the Language interpretation services revenues was encouraging.
Management confirmed that AMN Healthcare witnessed improved bookings, driven by technology and process improvements, drove locum tenens revenues sequentially. The business is also trending to return to year-over-year revenue growth. This looks promising for the stock.
AMN’s Zacks Rank and Key Picks
AMN Healthcare currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation (CVS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.1%.
Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. 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 8.8%.
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AMN Stock Gains Following Q1 Earnings & Revenue Beat, Margins Down
AMN Healthcare Services, Inc. (AMN - Free Report) delivered adjusted earnings per share (EPS) of 45 cents in the first quarter of 2025, which declined 53.6% year over year. However, the figure surpassed the Zacks Consensus Estimate by 136.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
GAAP loss per share for the quarter was 3 cents against EPS of 45 cents in the year-ago period.
AMN’s Revenues in Detail
AMN Healthcare registered revenues of $689.5 million in the first quarter, down 16% year over year. However, the figure surpassed the Zacks Consensus Estimate by 2.7%.
Shares of this company gained nearly 9.2% 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 first quarter of 2025, the Nurse and Allied Solutions segment’s revenues totaled $413.3 million, down 20.4% year over year. Travel nurse staffing revenues were down 36% year over year, whereas Allied revenues declined 13% year over year. Labor disruption events contributed $39 million in revenues in the quarter. This figure compares to our Nurse and Allied Solutions segment’s first-quarter projection of $394.8 million.
The Physician and Leadership Solutions segment’s revenues totaled $174.1 million, down 7.8% year over year. Locum tenens revenues were $141 million in the quarter, down 3% year over year. Interim leadership revenues were down 21% year over year. Physician and leadership search businesses saw a revenue decline of 29% year over year. This figure compares to our Physician and Leadership Solutions segment’s first-quarter projection of $171.7 million.
The Technology and Workforce Solutions segment’s revenues totaled $102.2 million, down 9.4% year over year. Language interpretation services business revenues came in at $75 million in the quarter (up 5% year over year), while the vendor management systems business saw a 33% year-over-year revenue decline to reach $19 million. This figure compares to our Technology and Workforce Solutions segment’s first-quarter projection of $103.6 million.
AMN Healthcare Services Inc Price, Consensus and EPS Surprise
AMN Healthcare Services Inc price-consensus-eps-surprise-chart | AMN Healthcare Services Inc Quote
AMN’s Margin Trend
In the quarter under review, AMN Healthcare’s gross profit fell 23.1% year over year to $198.1 million. The gross margin contracted 264 basis points (bps) to 28.7%.
Selling, general & administrative expenses fell 15.5% year over year to $147.7 million.
Adjusted operating profit totaled $50.4 million, reflecting a 39% decline from the prior-year quarter. The adjusted operating margin in the first quarter contracted 276 bps to 7.3%.
AMN Healthcare’s Financial Position
AMN Healthcare exited first-quarter 2025 with cash and cash equivalents of $55.8 million compared with $10.6 million at 2024-end. Total debt at the end of first-quarter 2025 was $1 billion compared with $1.060 billion at 2024-end.
Net cash provided by operating activities at the end of first-quarter 2025 was $92.7 million compared with $81.4 million a year ago.
AMN’s Guidance
AMN Healthcare has provided its financial outlook for the second quarter of 2025.
For the second quarter, the company expects revenues in the range of $645 million-$660 million, reflecting a decline of 11-13% compared with the prior-year figure. The Zacks Consensus Estimate is pegged at $644.3 million.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to decline 14-17% in the second quarter from the prior-year figure. The Technology and Workforce Solutions segment’s revenues are expected to decline 8-10% in the second quarter from the prior-year figure.
The company projects second-quarter revenues in the Physician and Leadership Solutions segment to decrease 5-7% from the prior-year figure.
Our Take on AMN Healthcare
AMN Healthcare’s dismal top-line and bottom-line performances in first-quarter 2025 were disappointing. The decline in all its segmental revenues during the reported quarter was worrying. The contraction of both margins does not bode well. AMN Healthcare expects to register a decline in its overall top line and all its segments in the second quarter of 2025, which is concerning. Also, the uncertainties stemming from tariff impacts are keeping the company’s clients cost-conscious, which raises our apprehension about the stock.
However, AMN Healthcare exited the quarter with better-than-expected results. The uptick in the Language interpretation services revenues was encouraging.
Management confirmed that AMN Healthcare witnessed improved bookings, driven by technology and process improvements, drove locum tenens revenues sequentially. The business is also trending to return to year-over-year revenue growth. This looks promising for the stock.
AMN’s Zacks Rank and Key Picks
AMN Healthcare currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation (CVS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.1%.
Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. 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 8.8%.