Iron Mountain Earnings Cheat Sheet: Solid Storage Revenue Growth

S&P 500 (NYSE:SPY) component Iron Mountain Inc. (NYSE:IRM) reported net income above Wall Street’s expectations for the first quarter. Iron Mountain Inc. provides information protection and storage services to clients throughout the globe.

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Iron Mountain Earnings Cheat Sheet for the First Quarter

Results: Net income for Iron Mountain Inc. rose to $73.5 million (37 cents/share) vs. $25.6 million (12 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.

Revenue: Rose 2.9% to $799 million YoY.

Actual vs. Wall St. Expectations: IRM reported adjusted net income of 26 cents/share. By this measure, the company fell short of the mean analyst estimate of 27 cents/share. Estimates ranged from 25 cents per share to 30 cents per share.

Quoting Management: “We are off to a good start to the year, posting solid storage revenue growth while continuing to drive operational efficiencies and strong profitability in our business. We remain on track to meet our goals for 2011,” said Richard Reese, Iron Mountain’s Chairman and Chief Executive Officer. “As we recently announced, we are moving forward with our comprehensive strategic plan to drive higher returns on invested capital and increase our stockholder payouts, returning approximately $2.2 billion to stockholders through 2013. By sustaining our leadership in North America, further optimizing our international portfolio and exploring strategic alternatives for our digital business, we are confident we can enhance value for our stockholders.”

Key Stats: Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.4 percentage point to 58.5% from the year earlier quarter. Over that span, margins have grown on average 1.7 percentage points per quarter on a year-over-year basis.

Over the last five quarters, revenue has increased 3.7% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 7.3% from the year earlier quarter.

Competitors to Watch: Equifax Inc. (NYSE:EFX), Moody’s Corporation (NYSE:MCO), FTI Consulting, Inc. (NYSE:FCN), The Dun & Bradstreet Corp. (NYSE:DNB), Volt Information Sciences, Inc. (NYSE:VOL), CTPartners Executive Search Inc (AMEX:CTP), Intersections Inc. (NASDAQ:INTX), Cintas Corporation (NASDAQ:CTAS), and COMFORCE Corporation (CFS).

Today’s Performance: Shares of IRM are trading at $31.75 as of April 28, 2011 at 10:11 AM ET, up from the previous close.


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