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Cano Health (NYSE:CANO) stock is taking a beating on Friday after the healthcare company provided a business update in its latest earnings report.
The big news here is Cano Health announcing its plan to explore strategic alternatives. According to it, this could result in the sale of the company, or at least some of its assets and businesses.
To go along with this, Cano Health says that it will exit operations in California, New Mexico, and Illinois by Fall 2023. That comes as it seeks to leave behind non-core assets in an effort to improve its business.
Mark Kent, interim CEO of Cano Health, said this about the plan.
“Cano Health is evaluating strategic interest in the Company to ensure we continue caring for our patients, while maximizing value for our stakeholders. 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 Stock Falls On Earnings
Adding to the bad news for investors in CANO stock is its earnings per share of -14 cents. That’s worse than the -12 cents per share that Wall Street was expecting during the period. Revenue of $766.75 million also missed estimates of $834.38 million.
With the recent strategic alternative announcement, Cano Health is also withdrawing its outlook for 2023. Even so, it still says that it expects performance to improve during the second half of the year.
CANO stock is down 48% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.