Cano Health reports Q2 EPS (51c), consensus (12c)

Reports Q2 revenue $766.7M, consensus $828.43M. The company currently believes that its liquidity is not sufficient to cover the company’s operating, investing and financing uses for the next 12 months. Management has concluded that there is substantial doubt about the company’s ability to continue as a going concern within one year. “Cano Health is evaluating strategic interest in the company to ensure we continue caring for our patients, while maximizing value for our stakeholders,” said Interim CEO Mark Kent. “Our mission and vision remain the same, however, the strategy and tactics needed to realize the profitability inherent therein requires a refreshed approach with a solid operating foundation. Cano Health took critical strategic steps during the second quarter of 2023 that are intended to accelerate our strategy to enhance operational efficiency and execute on the plan to improve the management of our medical costs. During the quarter, we accelerated actions to exit operations in California, New Mexico, Illinois, and Puerto Rico, as the company positions itself to focus on and optimize its core Medicare Advantage and ACO REACH assets in its core geographies…In our core Florida market we have rigorously reprioritized projects and initiatives to enhance the speed and quality of care for our members by improving patient engagement, restructuring contractual arrangements with payor and specialty networks, and terminating underperforming affiliate partnerships. These strategic and operational steps are critical to improving our financial performance, generating greater efficiency, and improving health outcomes for our members to ensure the organization’s long-term success.”