Iron Mountain Incorporated IRM reported third-quarter 2024 adjusted funds from operations (AFFO) per share of $1.13, beating the Zacks Consensus Estimate of $1.11.

Results reflect solid performances in the storage and service segments and the data center business. However, higher interest expenses in the quarter acted as a dampener. The company reaffirmed its outlook for 2024.

Quarterly total revenues of $1.56 billion surpassed the Zacks Consensus Estimate by just 0.06%.

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

According to William L. Meaney, president and CEO of Iron Mountain, “We are pleased to report a very strong third quarter and continued strong momentum in the second half of 2024, resulting in all-time record Revenue, Adjusted EBITDA, and AFFO.”

Behind the Headlines

Storage rental revenues were $935.7 million in the third quarter, up 9% year over year. We had estimated quarterly storage rental revenues to be $935.6 million.

Service revenues increased 17.4% from the prior-year quarter to $621.7 million.

The Global Data Center business reported revenues of $153.2 million in the third quarter, rising 20.1% year over year. Our estimate was pegged at $156 million.

The adjusted EBITDA rose 13.6% year over year to $568.1 million. The adjusted EBITDA margin came at 36.5%, increasing 50 basis points year over year.

However, interest expenses flared up 21.8% year over year to $186.1 million in the quarter. We projected the metric to be $178 million.

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.

Dividend Update

Concurrently, IRM announced a quarterly cash dividend of 71.5 cents per share for the fourth quarter of 2024. The dividend will be paid out on Jan. 7, 2024, to its shareholders on record as of Dec. 16, 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 lies 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.

 

Iron Mountain Incorporated Price, Consensus and EPS Surprise

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