Company beats expectations and shows progress in reducing low-margin contracts

  • Kyndryl Holdings narrowed its loss to $12 million, or 5 cents a share, for the third quarter
  • Adjusted losses were also 5 cents a share, beating analysts’ expectations
  • Revenue declined to $3.94 billion from $4.3 billion
  • Kyndryl attributed the decline in revenue to reducing zero-margin and low-margin contracts
  • Kyndryl raised its adjusted pretax income and EBITDA margin outlook for fiscal 2024

Kyndryl Holdings, the spin-off from International Business Machines, reported a significant improvement in its third-quarter financial results. The company narrowed its loss to $12 million, or 5 cents a share, surpassing analysts’ expectations. Revenue declined to $3.94 billion, reflecting Kyndryl’s efforts to reduce zero-margin and low-margin contracts. Despite the decline, the company raised its adjusted pretax income and EBITDA margin outlook for fiscal 2024, demonstrating its strong and consistent execution. Chief Executive Martin Schroeter expressed confidence in the company’s ability to achieve revenue growth in 2025.

Public Companies: Kyndryl Holdings (KD), International Business Machines (IBM)
Private Companies:
Key People: Martin Schroeter (Chief Executive)

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Factuality Level: 8
Justification: The article provides specific financial figures and statements from the company’s CEO, which can be verified. However, it does not provide any external sources or perspectives to corroborate the information.

Noise Level: 7
Justification: The article provides financial information about Kyndryl Holdings, including its narrowed loss and decline in revenue. It includes analyst expectations and the company’s outlook for fiscal 2024. However, it lacks in-depth analysis, evidence, or actionable insights. The article stays on topic and does not dive into unrelated territories.

Financial Relevance: Yes
Financial Markets Impacted: Kyndryl Holdings

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of Kyndryl Holdings, a company that was spun off from International Business Machines. It discusses the company’s narrowed loss in the latest quarter and its plans for future growth. There is no mention of an extreme event or any impact on financial markets or companies.

Reported publicly: www.marketwatch.com