KD - Kyndryl stock drops after company expects 2024 revenue to decline 6% - 8%

2023-05-17 13:07:11 ET

• Kyndryl ( NYSE: KD ) stock fell as much as 16.6% on Wednesday after the company, which spun off from IBM, said it expects a revenue decline for fiscal 2024.
• On Wednesday after the bell, the company said it expects fiscal 2024 revenue to fall 6% to 8%, or between $16.0 and $16.4 billion on current FX rates.
• The Seeking Alpha estimate for fiscal 2024 revenue is $16.47 billion.
• The company posted Q4 GAAP EPS of -$3.24, missing estimates by $2.21.
• Revenue of $4.26 billion was down 4% but beat consensus by $110 million.
• During Q4, the company recorded "workforce rebalancing costs" of $55 million and expects to incur ~$95 million in fiscal year 2024 for the same.
• Stock is down 9.6% at $13. If current session losses hold, about half of the YTD gains will be wiped off.

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