Cano Health lowers FY22 revenue view to $2.70B-$2.75B from $2.85B-$2.90B

Consensus is for FY22 revenue $2.85B. The lower revenue guidance was primarily driven by lower-than-expected capitated revenue PMPM from new members. Sees FY22 membership in the range of 300,000 to 305,000, unchanged from the prior guidance range, uotal medical cost ratio in the range of 79.5% to 80.5%, an increase from the prior range of 78.0% to 79.0%, driven by the lower-than-expected capitated reven PMPM from new memebers. The second half of 2022 is still expected to be lower than total MCR in the first half of 2022, primarily driven by normal seasonality in medical costs and cost recoveries Adjusted EBITDA of approximately $150M-$160M, a decrease from the prior guidance of approximately $200M. The Company added eight medical centers in the quarter, bringing total medical centers to 151, as of September 30 and 162 as of November 9; the Company expects to operate 170 by the end of 2022, a decrease from the prior guidance of 184 to 189, consistent with the focus on cash flow improvement.