AMN Healthcare Services, Inc. (NYSE:AMN) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of US$634m, some 2.7% above estimates, and statutory earnings per share (EPS) coming in at US$0.76, 1,015% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the consensus from AMN Healthcare Services' nine analysts is for revenues of US$2.56b in 2026, which would reflect a noticeable 5.7% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 91% to US$0.67. Before this earnings announcement, the analysts had been modelling revenues of US$2.53b and losses of US$0.55 per share in 2026. While next year's revenue estimates held steady, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
See our latest analysis for AMN Healthcare Services
The consensus price target held steady at US$21.36, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on AMN Healthcare Services, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$17.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await AMN Healthcare Services shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One more thing stood out to us about these estimates, and it's the idea that AMN Healthcare Services' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 4.6% to the end of 2026. This tops off a historical decline of 1.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.4% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect AMN Healthcare Services to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$21.36, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for AMN Healthcare Services going out to 2027, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with AMN Healthcare Services , and understanding it should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.