Losses shrink at Kyndryl

Article Excerpt

KYNDRYL HOLDINGS INC. $14 is a hold. The company (New York symbol KD; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 226.8 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.2; No dividends paid; TSINetwork Rating: Extra Risk; www.kyndryl.com) took its current form on November 3, 2021, when International Business Machines Corp. (New York symbol IBM) set it up as a separate firm. Kyndryl focuses on IBM’s legacy business of helping corporate and government clients manage their datacentres. Investors received one Kyndryl share for every five IBM shares. In its fiscal 2023 third quarter, ended December 31, 2022, Kyndryl’s revenue fell 5.6%, to $4.30 billion from $4.56 billion a year earlier. If you exclude exchange rates, revenue rose 3% in the quarter. Due to writedowns and costs related to the spinoff, Kyndryl lost $106 million, or $0.47 a share, in the quarter. Even so, that’s a lot better than the company’s year-earlier loss of $731 million, or $3.26 a share. Kyndryl is a hold. hold…