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AMN Healthcare Services Inc. AMN reported fourth-quarter 2019 adjusted earnings per share (EPS) of 85 cents, which outpaced the Zacks Consensus Estimate of 74 cents. Also, the bottom line increased 4.9% year over year.
The Zacks Rank #2 (Buy) company reported revenues worth $586.9 million, which surpassed the Zacks Consensus Estimate of $575.5 million. On a year-over-year basis, revenues increased 11%.
2019 at a Glance
In 2019, revenues amounted to $2.22 billion, which beat the Zacks Consensus Estimate of $2.21 billon. The figure increased 4% from 2018 figure.
Adjusted EPS was $3.18, ahead of the Zacks Consensus Estimate of $3.07. The metric declined 3.3% from 2018 levels.
Nurse and Allied Solutions revenues amounted to $1.42 billion (63.9% of net sales). Locum Tenens revenues were $0.3 million (14.6%) and Other Work Force Solutions revenues were $0.5 million (21.5%).
Segment Details
Nurse and Allied Solutions
In the fourth quarter of 2019, the segment’s revenues totaled $388.8 million, up 18.1% year over year.
Locum Tenens Solutions
The segment’s revenues amounted to $77.9 million, down 4.8% from the prior-year quarter’s figure.
AMN Healthcare Services Inc Price, Consensus and EPS Surprise
AMN Healthcare Services Inc price-consensus-eps-surprise-chart | AMN Healthcare Services Inc Quote
Other Workforce Solutions
In the quarter under review, the segment’s revenues came in at $120.2 million, up 2.3% year over year.
Margin
In the third quarter, gross profit totaled $197.1 million, up 14.3% year over year. As a percentage of revenues, gross margin was 33.6%, which expanded 100 basis points (bps).
Total operating expenses in the quarter were $150.2 million, up 22.8% year over year. Operating income in the quarter was $27.5 million, down 22.8%. As a percentage of revenues, operating margin was 4.7%, down 200 bps.
Guidance
For the first quarter of 2020, AMN Healthcare expects revenues in the range of $598-$605 million. The Zacks Consensus Estimate is pegged at $591.5 million.
Gross margin is expected in the range of 33.3-33.5%, while operating margin is projected between 6.8% and 7%.
Our Take
AMN Healthcare exited the fourth quarter on a solid note. The company gained from its core Nurse and Allied Solutions and Other Workforce Solutions units in the quarter. Management is upbeat about the latest Stratus Video and Advanced Medical buyouts, which are expected to expand the company’s travel as well as school therapy and travel nurse staffing capabilities. Expansion in gross margin is also encouraging.