AMN is forecasting its adjusted EBITDA margin to range between 7.8% and 8.3% for the second quarter of 2025. The company anticipates a revenue drop of 11-13% compared to the previous year, alongside a sequential decrease of 4-7%. The Nurse and Allied Solutions segment is expected to see a year-over-year revenue decline of 14-17%. For the Physician and Leadership Solutions segment, a 5-7% reduction in revenue is projected. The Technology and Workforce Solutions segment is likely to experience an 8-10% decrease compared to the prior year. Part of the guidance includes $16 million from labor disruption revenue.
Additional financial projections for the quarter include $19 million in depreciation, $2 million in cost of revenue depreciation, $20 million in non-cash amortization, and $11 million related to share-based compensation expenses. Integration and other expenses are estimated at $3 million, with interest expenses projected at $11.5 million. An adjusted tax rate of 28% is expected, based on 38.6 million diluted average shares outstanding.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for AMN Healthcare Services Inc (AMN, Financial) is $28.57 with a high estimate of $33.00 and a low estimate of $25.00. The average target implies an upside of 40.54% from the current price of $20.33. More detailed estimate data can be found on the AMN Healthcare Services Inc (AMN) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, AMN Healthcare Services Inc's (AMN, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AMN Healthcare Services Inc (AMN, Financial) in one year is $53.19, suggesting a upside of 161.63% from the current price of $20.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AMN Healthcare Services Inc (AMN) Summary page.
AMN Key Business Developments
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AMN Healthcare Services Inc (AMN, Financial) reported fourth-quarter revenue of $735 million, exceeding the high end of their guidance by $30 million.
- The company successfully repaid $75 million in revolver debt during the quarter, supported by strong cash flow.
- AMN's technology and workforce solutions revenue outperformed guidance by 4%, driven by improved volume in language services.
- The company launched and scaled best-in-class technology solutions in 2024, enhancing visibility, cost control, and efficiency in staffing management.
- AMN's market-leading app, Passport, now supports locum tenens and enables clinicians to store preferences and automatically apply for matching opportunities.
Negative Points
- Staffing gross margins declined throughout 2024, with recent stabilization not yet leading to significant improvement.
- Travel nurse orders remain 20% below pre-pandemic levels, despite being above April 2024 levels.
- The company reported a non-cash impairment charge of $222 million, impacting the nurse and allied and physician and leadership solution segments.
- Fourth-quarter net loss was $188 million, largely due to the non-cash goodwill impairment charge.
- AMN's international nurse revenue faced a headwind due to visa retrogression, impacting the nurse and allied segment.
