AMN Healthcare

AMN Healthcare Services, Inc. (AHS) share price surged 13.01% following the company’s report of their Q1 2012 earnings on May 3, 2012. The revenue of $226.4MM reflects a 2% sequential increase and a 5% year-over-year increase, while a gross profit of $63.2MM, up 1% both yearly and sequentially, driven by an increase in bill rates and clinicians on assignment. Net income boomed 105% to $3.5MM, with $0.07 EPS, compared to last year of the same quarter. The overall success of the company for the quarter is attributed to the strategic execution of its workforce solutions strategy.

CEO Salka said that they experienced continued momentum adding new MSP clients as well as growing traditional client business, adding that the efficiency of their MSP operations model and the productivity demonstrated by the sales and operations team continues to boost operating leverage. The company is also gearing towards recruiting more clinician candidates to brace themselves for the stronger market demands and conditions expected in the next two or three years.

AMN Healthcare Services is currently trading at 2.3x EV/IC with a forward P/E’ of 10.5x. Market implies an ROI’ of 10% while the five-year projected IC’ growth is 8%. Revenue is expected to range from $229MM to $233MM, with growth expected across all segments for the next quarter.