Iron Mountain Earnings: Here’s Why Shares are Down Now

Iron Mountain Inc. (NYSE:IRM) delivered a profit and missed 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. Shares are down 0.65%.

Iron Mountain Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 17.14% to $0.29 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 0.38% to $755 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Iron Mountain Inc. reported adjusted EPS income of $0.29 per share. By that measure, the company missed the mean analyst estimate of $0.31. It missed the average revenue estimate of $763.55 million.

Quoting Management: “Our financial and operating results for the second quarter reflect our continued focus on sustaining the durability of our storage rental business, enhancing the profitability of our International operations and supporting future growth through attractive acquisitions,” said William Meaney, Iron Mountain’s president and chief executive officer. “During the quarter, we achieved solid constant dollar storage rental growth of 3.0%, reflecting strong increases of 6.6% in our International business and consistent 1.8% growth in North America.”

Key Stats (on next page)…

Revenue increased 1.07% from $747.03 million in the previous quarter. EPS increased 7.41% from $0.27 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.32 and has not changed. For the current year, the average estimate has moved down from a profit of $1.18 to a profit of $1.17 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)