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AMN Healthcare Services (NYSE:AMN) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

AMN Healthcare Services, Inc. (NYSE:AMN) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.

The company is expected to report earnings of $0.69/share on revenue of $520.4 million. The consensus earnings per share (EPS) of $0.69/share is based on a poll of 9 analysts and represents a decline in eps of −14.7% over the same quarter last year, when the company reported earnings of $0.81/share.

The revenue forecast of $520.4 million based on a poll of 9 analysts implies a year-over-year (YoY) decline in revenue of −8.3%. Last year the company reported $567.6 million in revenue for the quarter.

Expected to report EPS contraction of −14.7% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $520.44 $567.60 −8.3%
EPS $0.69 $0.81 −14.7%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from AMN Healthcare Services, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.64 $0.83 30.2% Beat
Q1, 2020 $0.78 $0.79 1.3% Beat
Q4, 2019 $0.74 $0.85 14.1% Beat
Q3, 2019 $0.73 $0.81 11.5% Beat
Q2, 2019 $0.71 $0.77 8.1% Beat
Q1, 2019 $0.69 $0.75 8.0% Beat
Q4, 2018 $0.79 $0.81 2.7% Beat
Q3, 2018 $0.76 $0.84 10.7% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 4.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $55.93 $58.64 4.8% Increase
May 11, 2020 $44 $39.91 −9.3% Decline
February 13, 2020 $71.63 $78.54 9.6% Increase
October 31, 2019 $58.98 $58.69 −0.5% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.87, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.87 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

AMN Healthcare Services, Inc. is currently trading at $64.40/share, down −1.2% for the day. The company is trading at approximately 72.5% of its 52-week high of $89.22/share. The company’s stock price is up 9.8% since the last earnings report and down −2.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 60.43 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:AMN Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 35.17 and a forward P/E multiple of 21.62.

AMN Healthcare Services, Inc.’s current share price also implies a price-to-book (P/B) multiple of 3.90. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $64.40
P/E Ratio 35.2x
P/E Ratio (Fwd) 21.6x
PEG Ratio −1.2
Total Debt / Total Capital 25.8%
Levered Free Cash Flow $248.4 million
EV / EBITDA 15.5x

Finbox

AMN Healthcare Services, Inc. is a mid-cap stock with a market capitalization of $3.064 billion and a total enterprise value of $4.086 billion. The company operates in the Healthcare sector and the Healthcare Providers & Services industry.

AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to hospitals and healthcare facilities in the United States. It operates through three segments: Nurse and Allied Solutions, Locum Tenens Solutions, and Other Workforce Solutions. It offers travel nurse staffing under the American Mobile, Onward Healthcare, Nurses Rx, Advanced, and O’Grady-Peyton brands; nurse staffing and labor disruption services, a staffing solution under the NurseChoice and HealthSource Global Staffing brands; local, or per diem, staffing for daily shift work under the Nursefinders brand; and locum tenens staffing for specialties, clinicians, and dentists on an independent contractor basis on temporary assignments under the Staff Care and Locum Leaders brands. It also provides allied staffing services, such as skilled nursing facilities, rehabilitation clinics, and retail and mail-order pharmacies under the Med Travelers and Club Staffing brands; physician permanent placement services to hospitals, healthcare facilities, and physician practice groups under the Merritt Hawkins brand, as well as physician executive leadership search services under the B.E. Smith brand; and executive and clinical leadership interim staffing, healthcare executive search, and advisory services. In addition, it offers managed services programs; vendor management systems, including ShiftWise and Medefis technologies; recruitment process outsourcing for permanent hiring needs; workforce optimization services comprising consulting, data analytics, predictive modeling, and SaaS-based scheduling technology under the Smart Square brand; medical coding, clinical documentation improvement, case management, clinical data registry, and auditing and advisory services; digital staffing services; flex pool management; and credentialing software solutions to clinicians and healthcare enterprises. AMN Healthcare Services, Inc. was founded in 1985 and is based in Dallas, Taxas.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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