Cano Health (NYSE: CANO), a value-based primary care provider and population health company, tanked 70% at the time of writing after the company expressed “substantial doubt” over its ability to continue as a going concern for one year. Cano believes its current liquidity “is not sufficient to cover the Company’s operating, investing, and financing uses for the next 12 months.”
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As of August 9, the company had cash and cash equivalents of $101 million (excluding restricted cash of around $14 million). As a result, Cano is looking into selling off the company and plans to exit its operations in California, New Mexico, and Illinois later this year. The company is also looking to exit its Puerto Rico operations by early next year.
Cano also plans to reduce its workforce by 17% and these actions are expected to yield $50 million of annualized cost savings beginning in the third quarter of this year through the end of next year.
Meanwhile, in the second quarter, the company’s revenues increased by 11% year-over-year to $766.7 million, falling short of Street estimates of $798.24 million. Cano’s losses widened to $0.51 per share as compared to a loss of $0.03 per share, while analysts were expecting the company to report a loss of $0.08 per share.
The company has withdrawn its FY23 guidance as it pursues a sale of the company.
Analysts are sidelined about CANO stock with a Hold consensus rating based on one Buy, four Holds, and two Sells.
