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AMN revenue up 7% in Q3, but locum tenens revenue falls

November 01, 2018

AMN Healthcare Services (NYSE: AMN) reported third-quarter revenue rose 6.6% with growth coming in its nurse and allied business as well as its “other workforce solutions” business. Third-quarter revenue fell 9.3% in its locum tenens solutions business.

The San Diego-based company ranks as the largest US healthcare staffing firm, according to Staffing Industry Analysts.

(US$ thousands) Q3 2018 Q3 2017 % change
Revenue $526,842 $494,406 6.6%
Gross profit $175,147 $159,539 9.8%
Gross margin percentage 33.2% 32.3%  
Net income $27,918 $28,128 -0.7%


“We are very pleased to see demand in our travel nursing business recently increasing,” CEO Susan Salka said. “This provides us optimism for better volume growth. At the same time, there are challenges in a few other businesses, and our teams are working diligently and making progress on improving performance.”

Revenue was flat year over year in AMN’s travel nurse operations, but revenue in its allied healthcare staffing business rose 8% in the third quarter.

“Other workforce solutions” revenue — which includes VMS, RPO and physician permanent placement — rose 49.2% driven by its three acquisitions in April. Organic growth was 2%.

However, locum tenens revenue fell. The company said lower volumes were offset in part by positive pricing.

Revenue by segment

(US$ thousands) Q3 2018 Q3 2017 % change
Nurse and allied solutions $306,292 $302,933 1.1%
Locum tenens solutions $101,102 $111,415 -9.3%
Other workforce solutions $119,448 $80,058 49.2%


AMN forecast fourth-quarter revenue to be up 5% to 6% year over year.

Share price and market cap

AMN shares were up 13.87% to $57.64 at 10:19 a.m. Pacific time; the company had a market cap of $2.40 billion, according to FT.com.


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