AMN Healthcare Services (NYSE:AMN) reported Q3 revenue of $634.5 million, beating analysts’ estimates by 2.7%. Adjusted EPS of $0.39 was 95.2% above expectations. Q4 revenue guidance is $722.5 million, 16.4% higher than expected. Sales fell 7.7% YoY, but the operating margin increased to 7.5%. Market cap is $790.6 million.

AMN Healthcare Services provided healthcare workforce solutions with revenue ahead of expectations and an impressive operating margin increase. However, sales volumes dropped, and the company’s long-term revenue growth was sluggish at 2.9% annually over the last five years. Despite beating earnings estimates, EPS declined YoY and is expected to shrink further.

In Q3, AMN Healthcare Services reported an operating margin of 7.5%, up 4.3% YoY. Despite falling revenue, the company improved efficiency and scaled down expenses. However, EPS declined by 10.5% annually over the last five years, indicating a decrease in profitability on a per-share basis. Wall Street expects a 49.7% decrease in full-year EPS over the next 12 months.

AMN Healthcare Services had a solid quarter, beating EPS expectations and providing strong revenue guidance. While short-term performance is important, long-term business quality and valuation are crucial for investment decisions. With a history of tepid revenue growth and declining profitability, investors should weigh these factors before buying the stock.

Read more at Yahoo Finance: AMN Healthcare Services’s (NYSE:AMN) Q3 Sales Top Estimates, Stock Soars