IT infrastructure services provider Kyndryl (NYSE: KD) will be reporting earnings this Wednesday before the bell. Here’s what investors should know.
Kyndryl missed analysts’ revenue expectations last quarter, reporting revenues of $3.86 billion, up 3.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a slight 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, the market is expecting Kyndryl’s revenue to decline 1.4% year on year, in line with the 1.3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Kyndryl’s peers in the it services & consulting segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.4%, and Grid Dynamics reported revenues up 3.7%, topping estimates by 0.9%. IBM traded down 8.3% following the results while Grid Dynamics was up 2.1%.
Read our full analysis of IBM’s results here and Grid Dynamics’s results here.
There has been positive sentiment among investors in the it services & consulting segment, with share prices up 8.7% on average over the last month. Kyndryl is up 11.4% during the same time and is heading into earnings with an average analyst price target of $14.70 (compared to the current share price of $14.29).
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