Shares of
AMN Healthcare Services, Inc.
(
AHS
) reached a new 52-week high of $7.87 on August 21, and have shot
up 35.5% since posting solid second-quarter 2012 results earlier
this month. Earnings per share in the quarter soared 266.7% year
over year, marking a 57.1% positive earnings surprise.
This healthcare staffing and clinical workforce management
solutions provider has outperformed the Zacks Consensus Estimate in
4 out of the last 6 quarters, and delivered in-line results in the
other two. The stock now holds a Zacks #1 Rank (Strong Buy) and has
surged 80.3% year-to-date, demonstrating its inherent strength and
long-term earnings growth projection of 14%.
Fabulous 2Q, Upbeat Guidance
AMN Healthcare Services declared impressive second-quarter results
on August 2, wherein earnings of 11 cents per share surpassed the
Zacks Consensus Estimate of 7 cents and increased substantially
from 3 cents in the prior-year quarter.
The quarter's earnings were aided by improving demand and
constructive implementation of strategy in its core staffing and
recruitment services and workforce solutions. Looking at the
earnings surprise trend over the last six quarters, AMN Healthcare
Services has topped estimates by an average of 133.1%.
Consolidated sales of $235.8 million comfortably surpassed the
Zacks Consensus Estimate of $231 million, and rose 7% year over
year. The company experienced sales increases across the Nurse and
Allied Healthcare Staffing (up 13%) and Physician Permanent
Placement Services segments (up 1%), partly mitigated by a sales
decline at Locum Tenens Staffing segment (down 5%). Gross profit
jumped 11% to $67 million, whereas gross margin expanded 110 basis
points to 28.4%.
Management now expects third quarter consolidated sales between
$236 million and $240 million, reflecting a year-over-year growth
of 3% to 5%. Gross margin is projected at 28% to 28.5%.
Earnings Momentum Climbing
The Zacks Consensus Estimate for 2012 rose 11.4% to 39 cents per
share in the past 30 days, thanks to upward revisions in all 6
estimates. The current estimate implies year-over-year growth of
178.6%.
For 2013, four of 6 estimates were revised higher over the same
timeframe, lifting the Zacks Consensus Estimate by 4.3% to 49 cents
per share. The current estimate suggests year-over-year growth of
26.5%.
Premium Valuation
AMN Healthcare Services currently trades at a forward P/E of
19.46x, reflecting a 5.4% premium to the peer group average of
18.47x. Also, on a price-to-book basis, shares trade at 2.18x, a
1.9% premium to the peer group average of 2.14x. However, on a
price-to-sales basis, the stock trades at 0.33x, indicating a
discount of 48.4% to the peer group average of 0.64x.
A Look at the Chart
The chart below indicates that after witnessing volatility in the
past, the stock price has now started to correlate with the
increasing trend seen in estimates. The year-to-date return for the
stock is 80.3% compared to the S&P 500's return of 10.7%.
Founded in 1985 and headquartered in San Diego, California, AMN
Healthcare Services offers healthcare recruitment and clinical
staff management solutions in the U. S., and operates under three
segments - Nurse and Allied Healthcare Staffing, Locum Tenens
Staffing and Physician Permanent Placement Services. The company
provides staffing solutions for hospitals and other healthcare
institutions, provides physicians on a temporary and permanent
basis, and offers a recruitment process outsourcing program. The
company has a market cap of $309.9 million, and competes with Cross
Country Healthcare, Inc. (
CCRN
) and On Assignment Inc. (
ASGN
).
AMN HLTHCR SVCS (AHS): Free Stock Analysis
Report
AMN HLTHCR SVCS (AHS): Free Stock Analysis
Report
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