Iron Mountain Incorporated’s IRM third-quarter 2024 adjusted funds from operations (AFFO) per share of $1.13 outpaced the Zacks Consensus Estimate of $1.11. Total revenues of $1.56 billion surpassed the Zacks Consensus Estimate by just 0.06%.

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AFFO per share and total revenues increased 10.8% and 12.2%, respectively, on a year-over-year basis.

 

Iron Mountain Incorporated Price, Consensus and EPS Surprise

Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote

 

IRM’s Revenues Boost

IRM’s storage rental revenues increased 9% year over year to $935.7 million in the third quarter of 2024. The figure was higher than our estimate of $929 million. Service revenues grew 17.4% year over year to $621.7 million. It was lower than our estimate of $626.8 million.

Total revenues in the Global RIM business came in at $1.26 billion, which increased 6.6% from the prior-year quarter. It was lower than our estimate of $1.27 billion.

Total revenues in the Global Data Center business increased 20.1% year over year to $153.2 million. It was slightly lower than our estimate of $155.3 million.

The Corporate and Other business experienced a year-over-year total revenue increase of 84.4%, totaling $143.8 million. The figure was higher than our estimate of $127.5 million.

Increase in IRM’s Adjusted EBITDA

The adjusted EBITDA for Global RIM business rose 10.2% year over year to $569 million. The figure was higher than our estimate of $559.7 million.

The Global Data Center business reported an adjusted EBITDA growth of 25.5% year over year, totaling $66.8 million. It was higher than our estimate of $65.8 million.

However, the adjusted EBITDA for Corporate and Other posted a year-over-year decline of $67.7 million. The figure was higher than our estimate of a $61.7 million decline.

Balance-Sheet Position

IRM exited the third quarter with $168.5 million of cash and cash equivalents, up from $144.3 million as of June 30, 2024.

2024 Guidance

Iron Mountain reaffirmed its guidance for 2024 and now expects to be on track to achieve the upper end of the 2024 guidance range.

It expects AFFO per share of $4.39-$4.51. The Zacks Consensus Estimate for the same is pegged at $4.49, which stands within the company’s guided range.

Revenues are estimated to be $6.00-$6.15 billion, while adjusted EBITDA is anticipated to be $2.175-$2.225 billion.

Iron Mountain currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.