Kyndryl Amps Up Tech Collaboration with Stellantis: Details
Portfolio Pulse from Lekha Gupta
Kyndryl Holdings, Inc. (NYSE:KD) has expanded its multi-year deal with Stellantis N.V. (NYSE:STLA) to manage and operate select essential business operations including networking, data center support, and local IT services in Europe, North America, and South America. This extension builds on the agreement from February 2023 aimed at modernizing Stellantis' IT infrastructure. Kyndryl also reported Q3 adjusted EPS of $(0.05), beating consensus, and sales of $3.94 billion, surpassing estimates. The company revised its FY24 outlook, expecting at least $150 million in adjusted pretax income and a revenue decline of (6%) to (7%) in constant currency.
March 04, 2024 | 12:50 pm
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POSITIVE IMPACT
Kyndryl expands its collaboration with Stellantis, reports Q3 earnings above estimates, and revises FY24 outlook.
The expansion of the deal with Stellantis and the positive earnings report are likely to instill investor confidence in Kyndryl's growth trajectory and operational efficiency, potentially leading to a short-term positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Stellantis expands its technology collaboration with Kyndryl to modernize its IT infrastructure.
The extended partnership with Kyndryl to modernize its IT infrastructure underscores Stellantis' commitment to innovation and digital transformation, which could positively influence investor perception and potentially its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70