Iron Mountain Set to Release Q4 Earnings Amid Strong Performance
With a market cap of $32.6 billion, Iron Mountain Incorporated (IRM) stands as a leading provider of information management and storage solutions globally. The Boston-based company offers an array of services, including records management, data center solutions, secure shredding, and digital transformation. Established in 1951, Iron Mountain now caters to over 225,000 clients across various sectors like healthcare, government, legal, and finance. The firm is scheduled to announce its Q4 earnings on Thursday, Feb. 13, before the market opens.
Strong Earnings Anticipated for Q4
Before the earnings release, analysts predict that IRM will report adjusted funds from operations (FFO) of $1.11 per share. This represents a remarkable increase of 113.5% from the $0.52 reported in the same quarter last year. Iron Mountain has a solid track record of exceeding Wall Street’s earnings expectations, having surpassed estimates for the last four quarters. In the most recent quarter, an adjusted FFO of $1.13 per share exceeded analysts’ predictions by 10.8%.
Positive Forecast for Fiscal Year 2024
Looking ahead to fiscal year 2024, analysts foresee IRM achieving an adjusted FFO of $4.18, marking a significant increase of 128.4% compared to $1.83 in fiscal 2023.
IRM Surpasses Market with Strong Stock Performance
In the past year, Iron Mountain’s stock has surged by 65.7%, outpacing the S&P 500 Index’s (SPX) 25.3% gains and the Real Estate Select Sector SPDR Fund’s (XLRE) 8.9% returns. This tremendous performance is attributed to increased demand for data storage solutions amid economic uncertainties. Additionally, the company’s strategic investments in data center capabilities and asset lifecycle management (ALM) have significantly contributed to this growth. Highlighting its commitment to shareholders, Iron Mountain recently raised its quarterly cash dividend by 10% to $0.715 per share.
Investigating the Recent Decline in Share Price
Despite a robust revenue increase, IRM shares fell by 9% after the third-quarter earnings report released on Nov. 6. The company observed a 12.2% year-over-year revenue increase, reaching $1.6 billion, thanks to rises in both storage rental and service revenue. However, a net loss of $33.6 million for the quarter, compared to a net income of $91 million during the same quarter the previous year, disappointed investors.
Analysts Remain Cautiously Optimistic
The consensus stance on IRM stock is cautiously optimistic, with an overall “Moderate Buy” rating. Among the eight analysts covering the stock, six recommend a “Strong Buy,” one suggests a “Moderate Buy,” and one advises a “Strong Sell.”
IRM’s average analyst price target stands at $122.25, suggesting a potential increase of 10.1% from current price levels.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
