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IT infrastructure services provider Kyndryl (NYSE: KD) will be reporting results this Monday before market hours. Here’s what to look for.
Kyndryl missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $3.72 billion, down 1.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates.
Is Kyndryl a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Kyndryl’s revenue to grow 4.1% year on year to $3.90 billion, a reversal from the 4.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kyndryl has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Kyndryl’s peers in the it services & consulting segment, some have already reported their Q4 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 12.1%, beating analysts’ expectations by 2.5%, and Gartner reported revenues up 2.2%, in line with consensus estimates. IBM traded up 5.1% following the results while Gartner was down 22%.
Read our full analysis of IBM’s results here and Gartner’s results here.
Investors in the it services & consulting segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Kyndryl is down 12.9% during the same time and is heading into earnings with an average analyst price target of $37.67 (compared to the current share price of $23.68).
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