Third-quarter revenue fell 19.4% at AMN Healthcare Services (NYSE: AMN) to $687.9 million. Revenue fell in its nurse and allied solutions segment and in its technology and workforce solutions segment but rose in physician and leadership solutions.

Revenue and earnings were better than expected for the period, driven by core results and several beneficial discrete items, the company reported Nov. 7 after market close. Guidance provided with AMN’s second-quarter report forecast revenue to be down 32% to 34% year over year.

“Our company performed well in difficult competitive conditions to surpass revenue and earnings expectations in the third quarter of 2024,” President and CEO Cary Grace said in a press release. “Current and prospective clients are showing greater interest in total talent solutions, pulling in a diverse set of solutions including predictive workforce tools, temporary and permanent staffing, enabling technology, and our comprehensive range of managed staffing from master-supplier to vendor-neutral.”

Grace noted AMN is innovating with clients and healthcare partners to help optimize their workforces, including adding locums functionality to extend the market leadership of its ShiftWise Flex VMS platform.

Nurse and allied solutions revenue fell 30.4% year over year to $399.4 million. Travel nurse revenue dropped by 37%, reflecting a dip in demand earlier in the year. Allied revenue fell 16%.

Physician and leadership solutions revenue rose 13.2% with locum tenens revenue rising 26% to $142 million with growth coming from its 2023 acquisition of MSDR. Interim leadership revenue was down 7% year over year, while physician and leadership search businesses saw revenue fall by 38%.

Technology and workforce solutions revenue fell 10.7% to $107.5 million. Language services revenue rose 13% to $75 million, but vendor management system revenue fell 34% to $25 million.

AMN Healthcare Services – Q3 2024

Guidance

Fourth-quarter revenue is forecast to be down 14% to 16% year over year.

Fourth-quarter revenue forecasts by segment:

• Nurse and allied solutions, down 21% to 24% year over year
• Physician and leadership solutions, up approximately 3% year over year
• Technology and workforce solutions, down approximately 9% year over year

The outlook includes $45 million of nurse and allied revenue that is not expected to recur after the third quarter, primarily comprising labor disruption revenue.

Share Price

Shares in AMN were down 28.13% to $29.41 as of 10:59 a.m. Eastern time Nov. 8. They set a new 52-week low during today’s trading session when it reached $28.75.