Bear of the Day: AMN Healthcare Services (AMN)

Core Viewpoint - AMN Healthcare Services, Inc. is experiencing significant challenges in the healthcare staffing market, with earnings expected to decline by 62.4% in 2024 and no recovery anticipated in 2025 [1][7][8] Company Overview - AMN Healthcare provides a wide range of talent solutions for healthcare organizations in the U.S., including staffing, managed services, executive search, and revenue cycle solutions [2] - The company's clients encompass various healthcare settings, such as hospitals, clinics, and home health facilities [3] Financial Performance - In Q3 2024, AMN Healthcare reported earnings of $0.61, beating the Zacks Consensus Estimate by $0.03, despite a revenue decline of 19% year-over-year to $687.5 million [4][5] - The Nurse and Allied Solutions segment saw a significant revenue drop of 30% year-over-year to $399 million, with travel nurse staffing falling 37% year-over-year [6] Earnings Estimates - Analysts have revised down AMN Healthcare's earnings estimates, with the 2024 Zacks Consensus Estimate dropping to $3.09 from $3.15, reflecting a 62.4% decline from $8.21 last year [7] - The 2025 earnings estimate has also decreased to $1.92 from $2.93, indicating a further decline of 38.1% [8] Stock Performance - AMN Healthcare's shares have decreased by 66% over the year and are currently at five-year lows, raising concerns about whether the stock represents a value opportunity or a potential trap [11][12][13]