In a challenging quarter marked by widespread economic uncertainties, AMN Healthcare posted robust results that outperformed market expectations. The healthcare staffing company reported revenue of $734.71 million for the quarter ended December 2024. This figure, while representing a 10.2% year-over-year decline, still exceeded the Zacks Consensus Estimate of $695.12 million by a significant margin of +5.70%. Additionally, AMN Healthcare’s earnings per share (EPS) came in at $0.75, surpassing the consensus estimate of $0.52 by an impressive 44.23%, although it was down from $1.32 a year earlier.
Segment Performances
Examining the company’s performance in individual segments reveals a mixed but interesting picture. The Physician and Leadership Solutions segment reported days filled at 51.64 million, just below the estimated 52.75 million days. Despite this shortfall, the revenue per day filled was higher than expected, coming in at $2.65 million versus the estimate of $2.56 million. This led to total segment revenue of $173.14 million, close to the estimated $173.52 million, showing a modest 3% increase from the previous year.
On the other hand, the Nurse and Allied Solutions segment faced challenges as revenue plummeted by 15.4% year-over-year to $454.65 million. Nevertheless, this segment managed to exceed the estimated revenue of $418.84 million, proving more resilient than anticipated. Meanwhile, the Technology and Workforce Solutions segment reported $106.91 million in revenue, marking a 5% year-over-year decline but still topping the $102.79 million estimate.
Operating Income and Stock Performance
The operating income figures add another layer to the company’s complex performance narrative. The Nurse and Allied Solutions segment posted operating income of $38.93 million, and the Technology and Workforce Solutions segment generated $40.28 million in operating income, both slightly above their respective estimates. In contrast, the Physician and Leadership Solutions segment reported weaker operating income of $17.03 million, missing the anticipated $18.54 million.
Despite the better-than-expected overall quarterly results, AMN Healthcare’s stock saw an 11.1% decline over the past month, an underperformance compared to the +2.6% change in the Zacks S&P 500 composite. This decline indicates investor concerns, likely influenced by mixed signals in revenue growth and operating income, combined with broader market trends. AMN Healthcare currently holds a Zacks Rank #4 (Sell), suggesting potential underperformance in the near term.
The company’s mixed performance metrics highlight its resilience amid economic uncertainty but also point to areas that need strategic attention. The year-over-year revenue declines in key segments and stock performance signals should prompt AMN Healthcare to reevaluate its operational strategies to regain investor confidence and ensure sustained growth.
