Core Insights - AMN Healthcare Services, Inc. reported adjusted earnings per share (EPS) of 39 cents for Q3 2025, a decline of 36.1% year over year, but exceeded the Zacks Consensus Estimate by 105.3% [1] - The company's revenues for the third quarter were $634.5 million, down 7.7% year over year, yet surpassed the Zacks Consensus Estimate by 3.2% [2][9] - AMN Healthcare's gross profit fell 13.4% year over year to $184.4 million, with a gross margin contraction of 193 basis points to 29.1% [7][9] Revenue Breakdown - The Nurse and Allied Solutions segment generated revenues of $361.5 million, down 9.5% year over year, with travel nurse staffing revenues declining by 20% [4] - The Physician and Leadership Solutions segment reported revenues of $178.2 million, a decrease of 1.3% year over year, while locum tenens revenues increased by 3% to $146 million [5] - The Technology and Workforce Solutions segment's revenues totaled $94.8 million, down 11.8% year over year, with a significant 32% decline in vendor management systems revenue [6] Margin Analysis - AMN Healthcare's adjusted operating profit for the quarter was $45.8 million, reflecting a 27.7% decline from the prior year, with an adjusted operating margin contraction of 200 basis points to 7.2% [7][9] - Selling, general & administrative expenses decreased by 7.4% year over year to $138.6 million [7] Financial Position - At the end of Q3 2025, AMN Healthcare had cash and cash equivalents of $52.6 million, up from $41.5 million at the end of Q2 2025, while total debt decreased to $850 million from $920 million [10] - Cumulative net cash provided by operating activities was $193.9 million, down from $247.6 million a year ago [10] Future Guidance - For Q4 2025, AMN Healthcare expects revenues in the range of $715 million to $730 million, indicating a decline of 1-3% compared to the prior year [11] - The company anticipates a 1-3% increase in revenues for the Nurse and Allied Solutions segment, while expecting a 14-16% decline in the Technology and Workforce Solutions segment [12] Overall Assessment - The overall top-line performance in Q3 2025 was disappointing, with declines across all segments and margin pressures [13] - However, there were positive indicators such as an increase in Allied revenues and expectations for strong sequential volume growth in travel nursing for Q4 [14]

Core Insights - DaVita Inc. reported adjusted earnings per share (EPS) of $2.00 for Q1 2025, a decrease of 11.5% year over year, but exceeded the Zacks Consensus Estimate by 14.3% [1] - The company's revenues reached $3.22 billion, marking a 4.9% increase year over year and surpassing the Zacks Consensus Estimate by 0.4% [2] Revenue Analysis - Revenue per treatment was $400.1 million, up 4.1% year over year, driven by the inclusion of phosphate binders in the payment system and other rate increases [3] - Dialysis patient service revenues were $3.10 billion, reflecting a 5.5% year-over-year increase, while other revenues decreased by 6.6% to $120.5 million [5] Treatment and Patient Metrics - Total U.S. dialysis treatments for Q1 2025 were 7,040,519, averaging 91,793 treatments per day, a slight sequential increase of 0.01% [6] - As of March 31, 2025, DaVita served approximately 282,000 patients across 3,173 outpatient dialysis centers [6] Operational Changes - During Q1 2025, DaVita acquired one, opened six, and closed four dialysis centers in the U.S., and also acquired one and closed two centers internationally [7] Financial Performance - Gross profit declined by 0.8% year over year to $983.9 million, with a gross margin contraction of 177 basis points to 30.5% [8] - General & administrative expenses rose by 3.2% year over year to $374.1 million, while adjusted operating profit fell by 3.1% to $609.8 million [9] Cash Flow and Debt - DaVita ended Q1 2025 with cash and cash equivalents of $511.9 million, down from $845.9 million at the end of 2024, and total debt increased to $9.74 billion [10] - Net cash provided by operating activities was $180 million, compared to a net cash used of $134.8 million in the previous year [11] Guidance and Outlook - The company reiterated its adjusted EPS outlook for 2025, projecting a range of $10.20 to $11.30, with the Zacks Consensus Estimate at $10.76 [12] - Management expressed optimism regarding the revenue contribution from phosphate binders to the full-year operating income [14] Market Reaction - DaVita's shares fell nearly 0.4% in after-hours trading following the earnings report [4]

Core Viewpoint - AMN Healthcare Services, Inc. reported a significant decline in adjusted earnings per share and revenues for the first quarter of 2025, although the adjusted EPS exceeded consensus estimates. The company anticipates continued revenue declines across all segments in the upcoming quarter, raising concerns about its financial performance [1][10][12]. Revenue Summary - AMN Healthcare's total revenues for Q1 2025 were $689.5 million, reflecting a 16% decrease year over year, but surpassing the Zacks Consensus Estimate by 2.7% [2]. - The Nurse and Allied Solutions segment generated revenues of $413.3 million, down 20.4% year over year, with travel nurse staffing revenues declining by 36% [4]. - The Physician and Leadership Solutions segment reported revenues of $174.1 million, a decrease of 7.8% year over year, with locum tenens revenues down 3% [5]. - The Technology and Workforce Solutions segment's revenues totaled $102.2 million, down 9.4% year over year, although language interpretation services saw a 5% increase [6]. Margin Analysis - AMN Healthcare's gross profit fell by 23.1% year over year to $198.1 million, with a gross margin contraction of 264 basis points to 28.7% [7]. - Adjusted operating profit was $50.4 million, reflecting a 39% decline from the prior year, and the adjusted operating margin contracted 276 basis points to 7.3% [7]. Financial Position - At the end of Q1 2025, AMN Healthcare had cash and cash equivalents of $55.8 million, up from $10.6 million at the end of 2024. Total debt decreased to $1 billion from $1.060 billion [8]. - Net cash provided by operating activities was $92.7 million, compared to $81.4 million a year ago [8]. Guidance - For Q2 2025, AMN Healthcare expects revenues to be in the range of $645 million to $660 million, indicating an 11-13% decline compared to the previous year [10]. - The company anticipates a revenue decline of 14-17% in the Nurse and Allied Solutions segment, 8-10% in the Technology and Workforce Solutions segment, and 5-7% in the Physician and Leadership Solutions segment [11]. Market Reaction - Following the earnings report, AMN Healthcare's shares gained nearly 9.2% in after-hours trading, indicating a positive market reaction despite the overall disappointing financial performance [2].