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AMN Healthcare (AMN) Q4 Earnings and Revenues Top Estimates

·5 min read

AMN Healthcare Services Inc. AMN reported adjusted earnings per share (EPS) of $2.95 in the fourth quarter of 2021, which soared 195% year over year. The figure surpassed the Zacks Consensus Estimate by 14.3%.

GAAP EPS for the quarter was $2.42, compared with 19 cents in the year-ago quarter.

For full-year 2021, the company reported an adjusted EPS of $8.03, which outpaced the consensus mark by 4.9%. The bottom line improved 134.1% from the year-ago figure.

Revenues in Detail

AMN Healthcare’s fourth-quarter revenues were $1.36 billion, up 116% year over year. The top line outpaced the Zacks Consensus Estimate by 0.5%.

Robust segmental performances significantly drove the fourth-quarter revenues.

On a full-year basis, the company reported revenues of $3.98 billion, up 66% from the previous year. The figure matched the consensus mark.

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 2021, the Nurse and Allied Solutions segment’s revenues totaled $1.08 billion, up 142% year over year. Travel nurse staffing revenues grew 136% year over year, while allied division revenues rose 82% year over year.

AMN Healthcare Services Inc Price, Consensus and EPS Surprise

AMN Healthcare Services Inc Price, Consensus and EPS Surprise
AMN Healthcare Services Inc Price, Consensus and EPS Surprise

AMN Healthcare Services Inc price-consensus-eps-surprise-chart | AMN Healthcare Services Inc Quote

The Physician and Leadership Solutions segment’s revenues totaled $164 million, up 47% year over year. This upside can be attributed to 46% growth in Locum tenens revenues. Interim leadership revenues were up 49% year over year. Physician and leadership search businesses witnessed revenue growth of 52% year over year.

The Technology and Workforce Solutions segment’s revenues totaled $117 million, up 62% year over year. Language services business revenues amounted to $47 million in the quarter (up 24% year over year), while the vendor management systems business improved a whopping 165% year over year to reach $52 million.

Margin Trend

In the quarter under review, AMN Healthcare’s gross profit skyrocketed 109.5% to $434.3 million. However, gross margin contracted 100 basis points (bps) to 31.9%.

Selling, general & administrative expenses rose 53.8% to $238.7 million.

Operating profit totaled $168.6 million, compared with $28.7 million in the prior-year quarter. Adjusted operating margin in the fourth quarter expanded 790 bps to 12.4%.

Financial Position

AMN Healthcare exited the fourth quarter of 2021 with cash and cash equivalents of $180.9 million compared with $137 million at the end of the third quarter.

Cumulative net cash flow from operating activities at the end of the fourth quarter was $305.4 million compared with $256.8 million a year ago.

Guidance

AMN Healthcare has provided its financial outlook for the first quarter of 2022.

For the first quarter, the company expects revenues to be $1.48-$1.52 billion, reflecting growth of 66-71% from the prior-year figure. The Zacks Consensus Estimate for the same stands at $1.18 billion.

With respect to the Nurse and Allied Solutions segment, the company expects revenues to grow about 82% higher than the prior-year figure. The Technology and Workforce Solutions segment’s revenues are anticipated to improve around 56% from the prior-year figure.

The company projects first-quarter revenues at the Physician and Leadership Solutions segment to surge about 18% from the prior-year figure.

Gross margin is estimated to be 31.2-31.7%, while operating margin is expected to be 12.9-13.4%.

Our Take

AMN Healthcare exited the fourth quarter on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company recorded robust performance across each of its core segments, and both earnings and revenues improved in the quarter under review. Per management, AMN Healthcare is putting in efforts to address the urgent needs at present while focusing on evolving, integrating and offering more effective total talent solutions for the long term. Expansion of operating margin bodes well for the stock. Upbeat revenue guidance for the first quarter of 2022 is encouraging.

However, the company’s reliance on third parties and operation in a stiff competitive space remain headwinds. Contraction in gross margin is disappointing.

Zacks Rank

AMN Healthcare currently carries a Zacks Rank #2 (Buy).

Earnings of Other MedTech Majors at a Glance

Some other top-ranked stocks in the broader medical space that have announced quarterly results are Baxter International Inc. BAX, Molina Healthcare, Inc. MOH and Bio-Rad Laboratories, Inc. BIO.

Baxter, carrying a Zacks Rank #2, reported fourth-quarter 2021 adjusted earnings of $1.04 per share, which beat the Zacks Consensus Estimate by 0.9%. Revenues of $3.51 billion outpaced the consensus mark by 4.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Baxter has an estimated long-term growth rate of 9.5%. BAX surpassed earnings estimates in each of the trailing four quarters, the average surprise being 10.2%.

Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Fourth-quarter revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%. It currently carries a Zacks Rank #2.

Molina Healthcare has an estimated long-term growth rate of 18.8%. MOH surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 5%.

Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Fourth-quarter revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2.

Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 66.9%.


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