Procore signs multi-year strategic collaboration agreement with AWS
On Monday, JMP Securities analyst Constantine Davides revised the price target for AMN Healthcare (NYSE:AMN) to $33 from the previous $34 while maintaining a Market Outperform rating on the stock. According to InvestingPro data, the stock has shown resilience with a 17.8% gain over the past week, despite being down nearly 50% over the past year. Current analysis suggests the stock is trading below its Fair Value, presenting a potential opportunity for investors. The adjustment followed the company’s fourth-quarter earnings report released last Thursday after market close, which revealed revenues of $734.7 million. This figure represents a 10% year-over-year decline but still surpasses both JMP’s projection of $691.0 million and the consensus estimate of $694.4 million. InvestingPro analysis shows the company maintains a strong financial health score of 2.31, rated as ’FAIR’, with particularly robust scores in relative value and profit metrics.
The increase in revenue was attributed to labor disruption revenue within the Nurse and Allied Solutions segment. AMN Healthcare’s adjusted EBITDA for the quarter was $75.1 million, a 28% decrease compared to the same period last year but still ahead of both JMP’s and consensus estimates, which were set at $64.9 million.
The company also reported a gross margin of 29.8%, which was a decrease of 120 basis points from the previous quarter. Despite the sequential decline, the margin exceeded the high end of AMN’s own guidance for the quarter.
The earnings report and the subsequent adjustment in the price target by JMP Securities reflect the company’s performance amidst the challenges faced in the healthcare staffing industry. The maintained Market Outperform rating suggests that JMP Securities continues to view AMN Healthcare favorably despite the adjustments to financial projections. Looking ahead, InvestingPro indicates analysts expect net income growth this year, with 8 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, AMN Healthcare reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $0.75, compared to the forecast of $0.49. The company also exceeded revenue forecasts, reporting $735 million against the expected $694.36 million. This performance marks a 53% positive surprise in EPS and a notable revenue achievement. Despite a 21% year-over-year decrease in full-year revenue to $3 billion, AMN Healthcare’s strategic focus on innovation and operational efficiency has been highlighted by the launch of new technology platforms such as the Shiftwise Flex (NASDAQ:FLEX) VMS platform and the Passport app. Additionally, AMN Healthcare paid down $250 million in revolver debt throughout 2024. The company’s stock saw a significant rise following the earnings announcement, although specific stock price movements were not detailed in this report. Looking ahead, AMN Healthcare provided revenue guidance of $660-$680 million for the first quarter of 2025, with expectations of growth in locum tenens and language services. The company anticipates EBITDA margin improvement in the latter half of 2025.
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