Below is a brief note from Healthcare analyst Tom Tobin on why we're removing AMN Healthcare Services (AMN) from Investing Ideas today:
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AMN Management guided 1Q18 volume to +7 to +8% growth in Nurse and Allied, reflecting a substantial acceleration and confirming data we’ve seen in recent weeks in our Nurse Tracking data. The Nurse and Allied is likely going to overwhelm the marginal negatives from the print and guidance. Total revenue guidance for 1Q18 is slightly above consensus at the midpoint, likely resulting in only modest upside pressure in the shares, but positive nonetheless. Our tracker data published earlier this week is forecasting a volume increase of +6.7% YoY and agrees with management’s guidance. While we continue to believe AMN's business trends and multiple are unsustainable over the intermediate term, the pressure is not as pronounced as we expected. As a result, we are removing AMN given the positive 4Q17 results and positive 1Q18 guide and will look for the data to inform our re-entry into the position. |