Kyndryl stock rallies on better-than-expected results, forecast

Kyndryl Holdings Inc.
KD,
+2.73%
shares rallied in the extended session Tuesday after the managed infrastructure-service business spun off from International Business Machines Corp.
IBM,
-0.25%
topped Wall Street expectations. Kyndryl shares rose as much as 9% after hours, following a 2.8% rise in the regular session to close at $13.57. The company reported a fiscal third-quarter loss of $106 million, or 47 cents a share, compared with a loss of $731 million, or $3.26 a share, in the year-ago period. Revenue declined to $4.3 billion from $4.56 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 56 cents a share on revenue of $3.96 billion. Kyndryl forecast 2023 revenue of $16.8 billion to $17 billion, while analysts had estimated $16.19 billion. Kyndryl began trading on the NYSE on Nov. 4.