Iron Mountain’s Performance and Future Expectations Highlighted in Recent Report
Iron Mountain Incorporated (IRM), with a market capitalization of $28.7 billion, provides a spectrum of information management services focused on digital transformation, information security, data center operations, and asset lifecycle management. The company operates through two primary segments: the Global Records and Information Management (Global RIM) Business and the Global Data Center Business.
Stock Performance Overview
Over the past 52 weeks, Iron Mountain shares have outperformed the broader market. Specifically, IRM’s stock has increased by 20.6%, compared to the S&P 500 Index’s ($SPX) gain of 12.3%. However, on a year-to-date (YTD) basis, IRM shares have decreased by 7.6%, diverging from the marginal returns of the SPX.
Comparison with Other Financial Instruments
Additionally, Iron Mountain has shown stronger performance than the Real Estate Select Sector SPDR Fund (XLRE), which has risen 6.7% over the same year.
Q1 2025 Earnings Report Highlights
The company’s stock rose 2.4% following the release of its Q1 2025 earnings on May 1. Quarterly revenues reached $1.6 billion, reflecting a 7.9% increase year-over-year. This growth was driven by a 7.1% rise in storage rental revenue and an 8.8% boost in service revenue. Iron Mountain reported an adjusted EBITDA of $580 million, an increase of 11.8% from the previous year, yielding an adjusted EBITDA margin of 36.4%. Furthermore, the company’s adjusted Funds From Operations (AFFO) was $1.17 per share, representing a year-over-year increase of 6.4% and exceeding consensus estimates by 11.4%.
Future Revenue and Earnings Projections
Looking to fiscal 2025, Iron Mountain anticipates revenue between $6.74 billion and $6.89 billion, while expecting AFFO per share to range from $4.95 to $5.05. For the current fiscal year, ending in December 2025, analysts predict a significant year-over-year increase of 151.4% in adjusted FFO to $4.45 per share. The company has demonstrated a strong earnings surprise track record, having beaten consensus estimates in the last four quarters.
Analyst Outlook
Among the nine analysts covering Iron Mountain, the consensus recommendation is a “Strong Buy,” comprising seven “Strong Buy” ratings, one “Moderate Buy,” and one “Strong Sell.” This outlook reflects a more bullish sentiment compared to three months ago, when there were only six “Strong Buy” ratings.
Price Targets
On April 8, Truist Securities set a price target of $95 for IRM while issuing a “Buy” rating. Currently, Iron Mountain trades below the average price target of $115.44. The highest price target in the market, at $140, indicates a potential upside of 44.1% from current levels.
On the publication date, Sohini Mondal did not hold positions in any securities mentioned in this article. All information is for informational purposes only. For more details, please view the disclosure policy.
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The views and opinions expressed here are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
