Kyndryl Holdings, Inc. KD shares are trading higher Tuesday after the company raised its fiscal 2024 earnings outlook.
The Details:
Kyndryl reported first-quarter 2024 revenues of $4.2 billion and a quarterly net loss of $141 million. The company also raised its fiscal 2024 adjusted EBITDA margin outlook to approximately 14%, up from its prior projection of between 12% and 13%. The company also said it expects its fiscal 2024 adjusted free cash flow will be positive and expects its fiscal 2024 adjusted pretax income to be at least $100 million.
"We're relentlessly transforming our business, and this past quarter represented an important turning point. We now expect to generate adjusted pretax profit this fiscal year and going forward. This return to profit, driven by our strong execution, positions us well to deliver the significant margin expansion we've targeted," said Kyndryl CEO, Martin Schroeter.
Kyndryl Holdings shares are moving higher on heavy trading volume. According to data from Benzinga Pro, more than 5 million shares have been traded in the session, compared to the stock's 100-day average of 1.757 million shares.
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KD Price Action: According to Benzinga Pro, shares of KD are trading 18.5% higher at $14.76 at the time of publication.
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