Second-quarter revenue at AMN Healthcare Services Inc. (NYSE: AMN) fell 4.1% year over year. However, the San Diego-headquartered company reported revenue was still above guidance mainly thanks to its nurse and allied segment.

Travel nurse revenue rose 3% year over year, and its allied division posted a 14% year-over-year increase in revenue — up 9% on an organic basis — although revenue was roughly flat overall in its “nurse and allied solutions” business.

“Demand for contingent labor and our solutions continues to rise, with requests for nursing and allied professionals more than 20% above prior-year levels,” CEO Susan Salka said in a statement. “This reflects the difficulties of an extremely tight labor market and growing demand for healthcare services.”

AMN noted its acquisition of Advanced Medical in June contributed $5 million in revenue for the quarter.

It also reported the second quarter included revenue from labor disruption activity, but at a lower level than last year when a large strike occurred.

Locum tenens revenue fell 23.5% year over year. But “other workforce solutions” revenue rose 2.9% year over year driven by growth in AMN’s interim leadership, physician permanent placement and VMS business.

Revenue by segment

Guidance

AMN forecast third-quarter revenue to rise approximately 7% year over year including a full-quarter contribution from the Advanced acquisition. Organic consolidated revenue is forecast to be flat to up 1%.

Share price and market cap

Shares in AMN were up 8.34% to $54.71 as of 11:19 Eastern time today; the company had a market cap of $2.35 billion, according to FT.com.