AMN Healthcare Services Inc. (NYSE: AHS) reported first-quarter revenue rose 39.5% in the second quarter to $350.1 million, above guidance of $335 million to $340 million.

The San Diego-based company, which ranks as the largest US healthcare staffing provider, reported revenue rose 24% excluding acquisitions. It acquired Onward Healthcare, Locum Leaders and VMS provider Medefis from OGH LC in January for $82.5 million.

Net income more than doubled and gross margin also improved.

Quote

“All business segments are executing very strongly amid continued robust market conditions, which drove better than anticipated revenue and profitability growth in the second quarter,” said President and CEO Susan Salka. “Our recently acquired Avantas, Onward Healthcare, Locum Leaders and Medefis companies are also performing very well and the majority of our integration activities have been successfully completed. With the continuing favorable market environment, our outlook remains optimistic as we stay focused on delivering superior service to our clients and healthcare professionals, improving the efficiency of our operations, and developing or acquiring additional innovative workforce solutions and recruitment strategies.”  

Revenue by segment

Excluding acquisitions, nurse and allied healthcare staffing revenue rose 27% year over year and locum tenens staffing revenue rose 19%.

Guidance

AMN forecasts third-quarter revenue of $360 million to $365 million. Gross margin is forecast to be 31.0% to 31.5%.

Share price and market cap

Shares in AMN rose 4.70% in early afternoon trading today to $34.84 and the company had a market cap of $1.66 billion, according to Yahoo!