By Will Feuer
Shares of Kyndryl Holdings rose after the provider of information-technology-infrastructure services reported results for the fiscal second quarter.
The stock rose almost 13%, to $17.51, in morning trading. Shares are up more than 57% this year.
The company, which was spun off from IBM in 2021, narrowed its second-quarter loss. The adjusted loss of 5 cents a share beat analysts’ expectations for a loss of 13 cents a share.
Revenue fell to $4.07 billion, but beat analysts’ forecasts of $3.91 billion.
Demand for the company’s services has held up, despite the broader slowdown in spending on enterprise technology, Kyndryl Chief Executive Martin Schroeter said.
“We’re not discretionary,” he said. “We sit at the center of the secular trends that our customers want to be a part of.”
The company is ahead of schedule on its initiative to win more business catering to cloud hyperscalers, Schroeter said. In the first half of the fiscal year, Kyndryl booked $180 million in revenue tied to such customers. The company is targeting $300 million in such revenue this fiscal year.
Schroeter said the company is building on momentum signing higher-margin contracts. “We’ve put adjusted pretax losses behind us,” he said Wednesday on the company’s conference call.
The company raised its fiscal-year outlook for adjusted pretax income to at least $140 million, up from more than $100 million.
Write to Will Feuer at [email protected]
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