Why Shares of Cano Health Plummeted 29.5% This Week
Cano Health (NYSE: CANO), a value-based primary care provider, saw its shares drop 29.5% this week, according to data from S&P Global Market Intelligence. The stock closed last week at $2.34 and then opened on Monday at $2.40. It dropped to its 52-week low of $1.64 on Friday before closing the week at $1.65. It is down nearly $8 a share from where it was in early October and down more than 84% so far this year.
The downward trend is a combination of a poor week for the markets and a hangover from a less-than-promising third-quarter report. Cano said it increased membership by 40%, year over year, in the quarter and had revenue of $666 million, up 33% year over year. However, the company reported a higher-than-expected net loss of $112 million, or an earnings-per-share (EPS) loss of $0.23, compared to a loss of $64.3 million and an EPS loss of $0.09 in the third quarter last year.
The company said lower quarterly revenue from patients was the reason it was downgrading annual guidance to revenue landing from $2.7 billion to $2.75 billion, compared to earlier estimates of as much as $2.9 billion.
Source Fool.com
