Analyst Note| Debbie S. Wang |
Narrow-moat AMN Healthcare reported fourth-quarter revenue of $886 million, representing 47% year-over-year growth and exceeding management’s guidance and our expectations. In light of this outperformance, we anticipate a moderate boost to our $51 fair value estimate. Operating margin doubled year over year and net margin surged by 369%, as fixed costs remained quite stable despite tremendous top-line growth. While the impact of the pandemic on future years remains uncertain, this year will bring substantially higher revenue due to temporary shortages, and management has raised second-quarter guidance accordingly.