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View All NewsAMN revenue up 6% in first quarter, firm’s nurse staffing rises 8%
First-quarter revenue rose 5.5% at AMN Healthcare Services Inc. (NYSE: AMN), the largest healthcare staffing firm in the US. Growth was led by the San Diego, Calif.-based firm’s nurse and allied staffing business, where revenue rose 7.9%.
| (US$ thousands) | Q1 2018 | Q1 2017 | % change |
| Revenue | $522,489 | $495,169 | 5.5% |
| Gross profit | $167,824 | $161,776 | 3.7% |
| Gross margin percentage | 32.1% | 32.7% | |
| Net income | $42,681 | $32,008 | 33.3% |
Locum tenens revenue edged up 0.3% in the first quarter, while the company’s “other workforce soutions” segment rose 3.0%. Other workforce solutions includes AMN’s physician permanent placement, interim leadership and executive search, vendor management system, recruitment process outsourcing, education, medical coding and workforce optimization business lines.
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“I am very proud of how our teams rallied to meet our clients’ higher-than-expected staffing needs,” CEO Susan Salka said. “Demand continues to grow for strategic partners capable of providing comprehensive solutions to meet the evolving healthcare workforce challenges.”
Revenue by segment
| (US$ thousands) | Q1 2018 | Q1 2017 | % change |
| Nurse and allied solutions | $338,179 | $313,523 | 7.9% |
| Locum tenens solutions | $103,117 | $102,843 | 0.3% |
| Other workforce solutions | $81,193 | $78,803 | 3.0% |
The company also noted it acquired three firms in April — MedPartners, Phillips DiPisa and Leaders for Today — that expected to be immediately accretive to AMN’s adjusted earnings per share.
Guidance
AMN forecast second-quarter revenue to be up between 8.2% and 9.6% year over year. Gross margin is forecast to be 32.5% to 33.0% compared to 32.9% in the second quarter of 2017.
Share price and market cap
Shares in AMN were down 18.15% to $53.00 in trading as of 12:12 p.m. Eastern time. The company had a market cap of $2.60 billion.