Portsmouth, New Hampshire-based Iron Mountain Incorporated (IRM) is the global leader in storage and information management solutions. It offers digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction, and art storage. With a market cap of $29.1 billion, Iron Mountain serves over 240,000 customers globally. It is expected to announce its Q2 earnings before the market opens on Thursday, August 1.
Ahead of the event, analysts expect Iron Mountain to report an adjusted fund from operations (AFFO) of $1.01 per share, up 7.5% from $0.94 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s AFFO estimate in each of the past four quarters. Its AFFO per share for the last reported quarter grew 8.9% to $1.10, beating the projections by 11.1%.
Over the longer term, analysts expect Iron Mountain to report an AFFO per share of $4.22 in fiscal 2024, up 2.4% from $4.12 in fiscal 2023. In fiscal 2025, its AFFO is expected to grow 6.6% annually to $4.50 per share.
IRM stock is up 41.8% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 17.2% gains and the S&P 500 Real Estate Sector SPDR’s (XLRE) 2.1% returns over the same time frame.
Despite the solid price action, Iron Mountain’s stock fell 1.4% after the release of its Q1 earnings results on May 2. While Iron Mountain delivered strong performances in its storage, service, and data center segments, higher interest expenses during the quarter negatively impacted overall results. The company reported an impressive double-digit growth in revenues and net income. However, its comprehensive income saw a massive dip of 83.7%, primarily due to a $67.3 million loss in foreign currency translation. Nonetheless, the company has shown impressive financial resilience and has been consistent with dividend payouts over the past years.
The consensus opinion on Iron Mountain stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the seven analysts covering the stock, five recommend a “Strong Buy,” one advises a “Moderate Buy,” and the remaining one analyst suggests a “Strong Sell” rating.
Although IRM is currently trading above its average target price of $85.86, the Street-high target of $103 indicates a potential upside of 3.8% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
