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Why Is AMN Healthcare (AMN) Down 4.6% Since Last Earnings Report?

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A month has gone by since the last earnings report for AMN Healthcare Services (AMN - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is AMN Healthcare due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

AMN Healthcare Q1 Earnings and Revenues Top Estimates

AMN Healthcare Services Inc. reported first-quarter 2019 adjusted earnings per share (EPS) of 75 cents, which beat the Zacks Consensus Estimate by 8.7%. However, the bottom line declined 7.4% year over year.
 
The company reported revenues worth $532.4 million, which surpassed the Zacks Consensus Estimate by 1.5%. On a year-over-year basis, revenues rose 1.9%.
 
Segment Details
 
Nurse and Allied Solutions
 
In the first quarter of 2019, the segment’s revenues totaled $337 million, down 0.3% year over year.
 
Locum Tenens Solutions
 
The segment’s revenues amounted to $80.5 million, down 21.9% from the prior-year quarter.
 
Other Workforce Solutions
 
In the quarter under review, the segment’s revenues came in at $114.9 million, up 41.5% year over year.

Margin

In the first quarter, gross profit totaled $176.8 million, up 5.3% year over year. As a percentage of revenues, gross margin was 33.2% which expanded 110 bps.
 
Total operating expenses in the quarter were $131.7 million, up 16.9% year over year. As a percentage of revenues, operating margin was 8.5%, down 210 bps.
 
Guidance
 
AMN Healthcare has provided guidance for the second quarter of 2019.
 
Notably, second-quarter revenues are anticipated within $518-$524 million. The mid-point of $521 million lies within the Zacks Consensus Estimate of $528.6 million.
 
The company expects adjusted EBITDA margin of 12% for the second quarter.
 
Operating margin is anticipated to be 7.8%.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months.

VGM Scores

Currently, AMN Healthcare has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

AMN Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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