Kyndryl stock falls as IBM-spinoff's outlook misses Street view

Kyndryl Holdings Inc. (KD) shares fell in the extended session Tuesday after the managed infrastructure-service business spun off from International Business Machines Corp. (IBM) forecast revenue below Wall Street expectations. Kyndryl shares fell as much as 7% after hours, following a 0.9% decline in the regular session to close at $14.38. The company said it expects a revenue decline of 6% to 8% from the current year, or to fiscal-year revenue of about $16 billion to $16.4 billion based on current foreign exchange rates. Analysts surveyed by FactSet had forecast $16.47 billion. The company reported a fiscal fourth-quarter loss of $737 million, or $3.24 a share, compared with a loss of $229 million, or $1.02 a share, in the year-ago period. Without mentioning how many positions were affected, the company took a "workforce rebalancing charge" of $55 million in the quarter, of which Kyndryl expects to record another $95 million in fiscal 2024. Revenue declined to $4.26 billion from $4.31 billion in the year-ago quarter. Kyndryl began trading on the NYSE on Nov. 4.

-Wallace Witkowski

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05-16-23 1739ET

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