Iron Mountain Inc. (NYSE: IRM) reported third-quarter financial results before the bell on Wednesday, after which its stock price fell. Here are the key metrics for the quarter.
Third quarter earnings data: The company reported that adjusted earnings per share in the third quarter were 44 cents. Quarterly revenue of $1.56 billion, better than the street figure of $1.55 billion.
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Total reported revenue (excluding foreign currency impact) increased 12% compared to the previous year. This was due to a 9% increase in rental income from storage facilities and a 17% increase in service income.
On a constant currency basis, adjusted EBITDA increased 14% year-over-year in the quarter, driven by increases in Global Records Information Management (RIM), Asset Lifecycle Management (ALM) and data centers.
AFFO was $332.0 million for the quarter, compared to $301.2 million last year, an increase of 10.2% due to improved adjusted EBITDA. AFFO per share was $1.13, up 11% year over year.
Iron Mountain President and CEO William L. Meaney highlighted the team’s remarkable progress toward ambitious growth goals, noting that Project Matterhorn’s business model takes the company to the next level through innovative, enhanced solutions for customers to deliver.
Outlook: Iron Mountain affirmed full-year 2024 guidance toward the high end of the range for revenue of $6 billion to $6.15 billion, versus the estimate of $6.24 billion and AFFO per share of $4.39 to $4.51 .
Iron Mountain shares are up more than 83% this year.
When buying a stock for a longer time horizon, it is important for investors to estimate where they think the stock is going in the future.
When charting a stock’s future trajectory, investors should consider factors such as future earnings expectations and expected performance against a benchmark.
Iron Mountain’s revenue has grown an average of 9.53% per year over the past five years. The average analyst one-year price target is $136.0, which means an expected upside of 19.13% through 2025.
While past performance is no guarantee of future results, investors should also look at a stock’s historical performance compared to both a benchmark index and peer companies. Iron Mountain shares have delivered an annualized return of 44.62%, outperforming the S&P500 index by 37.48%. This compared to a growth of -0.5% in the total real estate sector. Iron Mountain has a beta of 0.58.
