AMN Healthcare Services Beat Earnings Estimates

Seth Jayson, The Motley Fool
Updated

AMN Healthcare Services (NYS: AHS) reported earnings March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AMN Healthcare Services missed estimates on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP loss per share grew.

Gross margins grew, operating margins expanded, net margins contracted.

Revenue details
AMN Healthcare Services logged revenue of $222.1 million. The six analysts polled by S&P Capital IQ foresaw revenue of $228.7 million on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $220.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.04. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.03 per share on the same basis. GAAP EPS were -$0.05 for Q4 against -$0.03 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.3%, 20 basis points better than the prior-year quarter. Operating margin was 4.5%, 250 basis points better than the prior-year quarter. Net margin was -1.1%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $227.9 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $956.8 million. The average EPS estimate is $0.29.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 264 members out of 276 rating the stock outperform, and 12 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give AMN Healthcare Services a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMN Healthcare Services is outperform, with an average price target of $8.38.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of AMN Healthcare Services. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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