Cano's stock plummets after disappointing results

Cano Health, a value-based care provider operating in nine states and Puerto Rico, saw its stock plunge Nov. 10 a day after the company reported lower than expected revenue in its quarterly results and lowered guidance for 2022.

The Miami-based company, which trades on the New York Stock Exchange under the ticker CANO, experienced a decline of about one-third from its close Nov. 9 of $3.34 to trade near to a 52-week low. Raymond James downgraded the company following the disappointing financials, according to a Nov. 10 Motley Fool report.

The lower than expected revenue from new patients during the third quarter led Cano to reduce its full-year guidance to a range of $2.7 billion to $2.75 billion compared with previous guidance of up to $2.9 billion. The net loss of $112 million for the quarter, or $0.23 per share, was also higher than expected, with analysts expecting a loss of $0.05 a share.

The disappointing figures may have increased speculation Cano could be a renewed takeover target. CVS has previously been rumored to be in talks to acquire Cano but reportedly walked away in October, causing Cano's stock price to almost halve in value Oct. 17.

The company will continue to focus on organic growth but remains open to possibilities of partnership, Cano CEO Marlow Hernandez, DO, said on a call with analysts following the release of results. 

"We are focused on improving our earnings and accelerating cashflow positivity; we have a great deal of momentum and tailwinds into 2023," he said. "We remain open to opportunities that allow us to capitalize further."

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