AMN Healthcare Posts Fair Q4 Results While Contract Labor Enters an Expected Decline

Narrow-moat AMN Healthcare posted relatively mild fourth-quarter results as temporary staffing volume begins to decline behind the scenes. In 2022, the healthcare staffing industry saw bill rates fall from a pandemic peak that was unmaintainable for healthcare facilities. In 2023, we expect a decline in volume to catch up with the drop in bill rate as hospitals streamline costs. Though the quarter was slightly less negative than we expected, management expects headwinds that are consistent with what we’ve modeled, so we maintain our fair value estimate of $102 per share.