Iron Mountain Inc. (NYSE:IRM) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Iron Mountain Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 6.9% to $0.27 in the quarter versus EPS of $0.29 in the year-earlier quarter.
Revenue: Rose 0.07% to $747 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Iron Mountain Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company met the mean analyst estimate of $0.27. It missed the average revenue estimate of $761.65 million.
Quoting Management: “During the first quarter, we delivered solid operating performance driven by consistent storage rental growth,” said William Meaney, Iron Mountain’s president and chief executive officer. “Strong constant dollar storage rental growth of 4.4% reflected continued healthy revenue increases of 12% in our International business and consistent 2% gains in North America. Margin contribution from our International business continued to improve, supported by solid performance in our western European operations.”
Key Stats (on next page)…
Revenue decreased 1.51% from $758.47 million in the previous quarter. EPS increased 35% from $0.20 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.32 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $1.22 to a profit of $1.19 over the last ninety days.