Healthcare Providers & Services Stocks Q3 Recap: Benchmarking AMN Healthcare Services (NYSE:AMN)

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at AMN Healthcare Services (NYSE:AMN) and its peers.

The healthcare providers and services sector, from insurers to hospitals, benefits from consistent demand, generating stable revenue through premiums and patient services. However, it faces challenges from high operational and labor costs, reimbursement pressures that squeeze margins, and regulatory uncertainty. Looking ahead, an aging population with more chronic diseases and a shift toward value-based care create tailwinds. Digitization via telehealth, data analytics, and personalized medicine offers new revenue streams. Nonetheless, headwinds persist, including clinical labor shortages, ongoing reimbursement cuts, and regulatory scrutiny over pricing and quality.

The 40 healthcare providers & services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.6% below.

In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results.

AMN Healthcare Services (NYSE:AMN)

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE:AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

AMN Healthcare Services reported revenues of $634.5 million, down 7.7% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

“The AMN team responded impressively to the second quarter's marketplace uncertainty, delivering third quarter revenue and earnings ahead of our guidance,” said Cary Grace, President and Chief Executive Officer of AMN Healthcare.

AMN Healthcare Services delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 10.9% since reporting and currently trades at $16.42.

Is now the time to buy AMN Healthcare Services? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Guardant Health (NASDAQ:GH)

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ:GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Guardant Health reported revenues of $265.2 million, up 38.5% year on year, outperforming analysts’ expectations by 12.6%. The business had an incredible quarter with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Guardant Health pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 49.3% since reporting. It currently trades at $107.93.

Is now the time to buy Guardant Health? Access our full analysis of the earnings results here, it’s free for active Edge members.

Brookdale (NYSE:BKD)

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale reported revenues of $813.2 million, up 3.7% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS and revenue estimates.

Interestingly, the stock is up 22.2% since the results and currently trades at $11.13.

Read our full analysis of Brookdale’s results here.

Addus HomeCare (NASDAQ:ADUS)

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.

Addus HomeCare reported revenues of $362.3 million, up 25% year on year. This print surpassed analysts’ expectations by 2.2%. It was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 1% since reporting and currently trades at $120.20.

Read our full, actionable report on Addus HomeCare here, it’s free for active Edge members.

Surgery Partners (NASDAQ:SGRY)

With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ:SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.

Surgery Partners reported revenues of $821.5 million, up 6.6% year on year. This result met analysts’ expectations. More broadly, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.

The stock is down 21.4% since reporting and currently trades at $17.05.

Read our full, actionable report on Surgery Partners here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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