Shares of Cano Health took a significant hit on Friday following the company’s disappointing earnings report. The stock plummeted by 25% in morning trading, reaching an all-time low of $6.11 per share. This marks a staggering 94% decrease in stock value for the year.
Cano Health issued a warning to investors, expressing concerns about a potential cash shortfall. The company stated that its current liquidity of approximately $53 million, as of November 9th, is insufficient to cover its operating, investing, and financing cash needs over the next 12 months. This is a substantial decrease from the $101.5 million in liquidity reported on August 9th.
In the third quarter, Cano reported a loss of $491.7 million, or $91.87 per share. This is a significant increase compared to the loss of $112 million, or $23.34 per share, in the same period last year. The reported loss per share was much higher than analysts’ expectations, which anticipated a loss of $17.64 per share according to FactSet.
Cano Health made its debut on the New York Stock Exchange in 2021 following a deal with Jaws Acquisition Corp., a special purpose acquisition company led by Barry Sternlicht. However, the company has been facing numerous challenges this year. With declining stock performance and diminishing cash reserves, Cano had to make tough decisions such as laying off employees and appointing a new CEO.
These recent developments paint a concerning picture for Cano Health’s future prospects. The company’s ability to address its cash shortfall and stabilize its financial situation will be crucial for its survival in the coming months.