What happened
Shares of Cano Health (CANO) were up 10% Tuesday morning after rising as high as 12.1%. The move up Tuesday is the continuation of a 20% jump the healthcare stock had Friday after Cano announced that CEO Marlow Hernandez would be stepping down and replaced on an interim basis by Mark Kent, who had been the company's Chief Strategy Officer. The stock is still down nearly 1% so far this year.
So what
Cano has had a tumultuous several months. The company has been in a proxy fight with billionaire Barry Sternlicht, who is a former Cano board member. Sternlicht and two other former board members, Elliot Cooperstone and Lewis Gold, were pushing for Hernandez's ouster and wanted to install two alternative board members. That move was voted down by shareholders at the company's annual stockholders meeting last week and shareholders also voted down a reverse stock split that the board had proposed.
Hernandez founded the company in 2009 and will remain on the board. Cano runs 170 primary care centers and is affiliated with senior primary care medical practices in Florida, Texas, Nevada, and Puerto Rico. Cano went public via a merger with a special purpose acquisition company (SPAC) in 2020 that was backed by Sternlicht. While Cano has increased revenue, it has not been profitable and lost $207 million last year.
Now what
In the first quarter, the company reported that it had increased membership by 44% year over year to 388,667 members, including 207,420 Medicare Advantage members. It also reported revenue of $866.9 million compared to $704.3 million in the same period a year ago. However, it also lost $60.6 million after losing $100,000 in the first quarter of 2022. It also released guidance to say it expected 2023 revenue between $3.25 billion and $3.35 billion, compared to 2022 revenue of $2.74 billion.
