AMN Stock Gains Following Q4 Earnings & Revenues Beat, Margins Down

Core Insights - AMN Healthcare Services, Inc. reported adjusted earnings per share (EPS) of 75 cents for Q4 2024, a decline of 43.2% year over year, but exceeded the Zacks Consensus Estimate by 44.2% [1] - The company experienced a GAAP loss per share of $4.90 for the quarter, compared to an EPS of 33 cents in the same period last year [2] - Full-year 2024 EPS was $3.31, down 59.7% from 2023, yet it surpassed the Zacks Consensus Estimate by 7.8% [2] Revenue Performance - AMN Healthcare's Q4 2024 revenues were $734.7 million, a decrease of 10.2% year over year, but above the Zacks Consensus Estimate by 5.7% [3] - For the full year 2024, revenues totaled $2.98 billion, reflecting a 21.3% decrease from 2023, while also beating the Zacks Consensus Estimate by 1.4% [3] Segment Analysis - The Nurse and Allied Solutions segment reported revenues of $454.7 million in Q4 2024, down 15.4% year over year, with travel nurse staffing revenues declining by 35% [5] - The Physician and Leadership Solutions segment's revenues were $173.1 million, up 2.9% year over year, driven by a 10% increase in locum tenens revenues [6] - The Technology and Workforce Solutions segment generated revenues of $106.9 million, down 4.9% year over year, with language interpretation services revenues increasing by 12% [7] Margin and Expense Trends - AMN Healthcare's gross profit fell 16.1% year over year to $218.9 million, with a gross margin contraction of 208 basis points to 29.8% [8] - Selling, general & administrative expenses decreased by 14.3% year over year to $158.9 million [8] - Adjusted operating profit was $60.1 million, reflecting a 20.4% decline from the prior year, with an adjusted operating margin of 8.2% [8] Financial Position - At the end of 2024, AMN Healthcare had cash and cash equivalents of $10.6 million, down from $32.9 million at the end of 2023 [10] - Total debt decreased to $1.060 billion from $1.310 billion at the end of 2023 [10] - Cumulative net cash provided by operating activities was $320.4 million, compared to $372.2 million a year ago [10] Guidance - For Q1 2025, AMN Healthcare expects revenues between $660 million and $680 million, indicating a decline of 17-20% compared to the previous year [11] - The company anticipates a 22-25% decline in revenues for the Nurse and Allied Solutions segment and an 8-10% decline for the Technology and Workforce Solutions segment in Q1 2025 [12] Overall Assessment - The overall performance of AMN Healthcare in Q4 2024 was disappointing, with significant declines in revenue across most segments [13] - Despite the challenges, there were positive indicators such as stable bill rates for Nurse and Allied staffing and growth in locum tenens revenues [15]