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View All NewsAMN revenue up 8% in third quarter; strong demand in nurse and allied
Revenue rose 7.7% in the third quarter at AMN Healthcare Services Inc. (NYSE: AMN) amid strong demand for nurses and allied healthcare workers along with its acquisition of Advanced Medical in June. Revenue was up 6% on an organic basis at the San Diego-based healthcare staffing firm.
“The need for healthcare talent and workforce solutions by our clients has accelerated as labor market conditions remain very constrained,” CEO Susan Salka said.
| (US$ thousands) | Q3 2019 | Q3 2018 | % change |
| Revenue | $567,597 | $526,842 | 7.7% |
| Gross profit | $190,031 | $175,147 | 8.5% |
| Gross margin percentage | 33.5% | 33.2% | |
| Net income | $23,515 | $27,918 | -15.8% |
AMN cited strong demand for nurse and allied healthcare staffing with orders at a three-year high, although locum tenens revenue fell 16.8%.
Nurse and allied solutions revenue rose 18.4% year over year in the third quarter but was up 6% on an organic basis. Revenue in the travel nurse division revenue grew 10% year over year with organic growth of 4%; allied division revenue rose 46% but was up 11% on an organic basis.
Revenue by segment
| (US$ thousands) | Q3 2019 | Q3 2018 | % change |
| Nurse and allied solutions | $362,533 | $306,292 | 18.4% |
| Locum tenens solutions | $84,164 | $101,102 | -16.8% |
| Other workforce solutions | $120,900 | $119,448 | 1.2% |
Guidance
AMN forecast fourth-quarter revenue to be up 8% to 9% year over year.
Share price and market cap
Shares in AMN were down 0.87% to $58.25 at 8:32 a.m. Eastern time; the company had a market cap of $2.74 billion, according to FT.com.