Patrons of The Lead-Lag Report would recollect that in this week's edition I've talked up the prospects of the healthcare segment. A slowing job market and the prospect of likely healthcare reform under a Democrat-controlled Congress have resulted in some interest coming back to this sector. So much so that the chart measuring the performance of healthcare stocks to the S&P 500 is on the cusp of breaking past the crucial 20MA (moving average), something it has lagged since late May-2020.
The stock I'll be covering today - AMN Healthcare (NYSE:AMN) - is part of this broad healthcare universe and one that I had written about more than six months back. For the uninitiated, AMN is the nationwide leader in the healthcare staffing market - essentially, the company serves as an intermediary in an industry where there is a growing demand-supply mismatch of labor. I thought it would be a good time to revisit the AMN story and update investors with recent developments.
Topline guidance scaled up by ~8% earlier this week
AMN is due to announce its Q4 results sometime in February, but what's noteworthy is that a few days back they recently scaled up their estimates beyond their previous guidance. Back in November, they had guided to a Q4 revenue range of ~$575m to $585m. This would have implied a flattish to ~-2% YoY decline relative to last year's Q4 of $589m. Now AMN expects to deliver $623m to $628m, an ~8% uptick from the mid-point of the previous guidance, which would also represent ~6.5% annual growth.
In addition to this, AMN also had previously guided to an expected EBITDA margin range of 13.3%-13.8%, now they've become slightly more specific and say that the Q4 margin will likely be toward the higher end of this range. As you can see from
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