Kyndryl (KD) Q2 Earnings: What To Expect

IT infrastructure services provider Kyndryl (NYSE:KD) will be announcing earnings results this Wednesday before market hours. Here’s what to expect.

Kyndryl met analysts’ revenue expectations last quarter, reporting revenues of $3.77 billion, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS 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 2.1% year on year, a deceleration from its flat revenue in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Everforth’s revenues decreased 1.3% year on year, beating analysts’ expectations by 1.6%, and Grid Dynamics reported revenues up 7%, topping estimates by 1.6%. Everforth traded up 17.8% following the results while Grid Dynamics was down 6.1%.

Read our full analysis of Everforth’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 5.3% on average over the last month. Kyndryl is up 12.2% during the same time and is heading into earnings with an average analyst price target of $13.60 (compared to the current share price of $13.78).

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