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NEW YORK - Kyndryl Holdings, Inc. (NYSE: KD), a leading IT infrastructure services provider with a market capitalization of $7.93 billion and annual revenue of $15.11 billion, today responded to a short seller report, dismissing its allegations as inaccurate and intentionally deceptive. The company emphasized its commitment to accurate and transparent accounting practices, countering the report’s implications of impropriety. According to InvestingPro analysis, Kyndryl is currently trading below its Fair Value, suggesting the market may be undervaluing the company’s fundamentals.
In a statement, Kyndryl addressed the report, which surfaced earlier today, by defending the integrity of its financial reporting. The company stated that the report’s conclusions were crafted to unfairly influence Kyndryl’s stock price for the short seller’s advantage. Kyndryl expressed confidence in the correctness of its accounting and disclosures, asserting they are fully compliant with all necessary reporting standards.
Kyndryl also expressed regret for not having the chance to correct the report’s inaccuracies before its publication. The company highlighted its ongoing transformation and dedication to driving profitable growth, reaffirming its focus on executing its strategic growth plan.
Serving a global client base, Kyndryl operates in over 60 countries, where it designs, builds, manages, and modernizes critical information systems that enterprises rely on.
This response comes as Kyndryl continues to navigate the competitive landscape of IT infrastructure services, where maintaining investor confidence and market stability is paramount.
The information in this article is based on a press release statement from Kyndryl.
In other recent news, Kyndryl has been the subject of significant developments. Gotham City Research released a critical report accusing Kyndryl of manipulating financial metrics, suggesting that the company has been inflating its adjusted EBITDA and free cash flow figures. The report raises concerns about Kyndryl’s relationship with IBM and potential cost pressures that could impact future earnings. S&P Global Ratings revised its outlook for Kyndryl to positive, citing progress in transformation initiatives and improved cash flow prospects. The rating agency noted Kyndryl’s success in contract signings and cost savings, which have contributed to a more favorable financial outlook. Kyndryl also announced an extension of its credit agreement with a $3.15 billion limit until 2030, enhancing its financial flexibility. Additionally, Kyndryl has been named a specialized partner for Google Cloud’s AI models, as part of a collaboration to modernize mainframe applications. Lastly, Kyndryl launched new SASE services in partnership with Palo Alto Networks to enhance network security for enterprises.
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