We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Iron Mountain (IRM) Up 6.1% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Iron Mountain (IRM - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Iron Mountain due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Iron Mountain Q3 FFO Tops Estimates, Revenues Fall Y/Y
Iron Mountain reported third-quarter 2020 normalized FFO per share of 61 cents, which beat the Zacks Consensus Estimate of 55 cents. However, the reported figure was 1.5% lower than the year-ago quarter’s 62 cents.
Revenues of $1.04 billion declined 2.1% year over year. However, the top line outpaced the Zacks Consensus Estimate of $991.3 million.
Results reflect strength in the company’s core storage business. However, the service segment‘s performance was disappointing due to the coronavirus outbreak-led concerns.
Adjusted FFO (AFFO) decreased 4.5% year over year to $213 million.
Quarter Details
Storage revenues were $696 million in the September-end quarter, highlighting a 3.8% year-over-year increase on a constant-currency basis. The company recorded 2.5% organic growth year over year.
Service revenues amounted to $340 million in the reported quarter, indicating a year-over-year fall of 12.2% on a constant-currency basis. Further, organic service revenues declined 13.5% year over year.
Adjusted EBITDA margin expanded 30 basis points (bps) to 35.7%.
Liquidity
The company exited the third quarter with $152 million of cash and cash equivalents, down from $193.6 million at 2019 end.
As of the third-quarter end, the company had total liquidity of $1.7 billion.
Project Summit Update
Iron Mountain’s transformation program — Project Summit — focuses on simplifying global structure, streamlining managerial structure and enhancing customer experience.
Project Summit is anticipated to deliver annual adjusted EBITDA benefits of $375 million exiting 2021. The total cost to implement the program is estimated to be approximately $450 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Iron Mountain has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Iron Mountain has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Iron Mountain (IRM) Up 6.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Iron Mountain (IRM - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Iron Mountain due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Iron Mountain Q3 FFO Tops Estimates, Revenues Fall Y/Y
Iron Mountain reported third-quarter 2020 normalized FFO per share of 61 cents, which beat the Zacks Consensus Estimate of 55 cents. However, the reported figure was 1.5% lower than the year-ago quarter’s 62 cents.
Revenues of $1.04 billion declined 2.1% year over year. However, the top line outpaced the Zacks Consensus Estimate of $991.3 million.
Results reflect strength in the company’s core storage business. However, the service segment‘s performance was disappointing due to the coronavirus outbreak-led concerns.
Adjusted FFO (AFFO) decreased 4.5% year over year to $213 million.
Quarter Details
Storage revenues were $696 million in the September-end quarter, highlighting a 3.8% year-over-year increase on a constant-currency basis. The company recorded 2.5% organic growth year over year.
Service revenues amounted to $340 million in the reported quarter, indicating a year-over-year fall of 12.2% on a constant-currency basis. Further, organic service revenues declined 13.5% year over year.
Adjusted EBITDA margin expanded 30 basis points (bps) to 35.7%.
Liquidity
The company exited the third quarter with $152 million of cash and cash equivalents, down from $193.6 million at 2019 end.
As of the third-quarter end, the company had total liquidity of $1.7 billion.
Project Summit Update
Iron Mountain’s transformation program — Project Summit — focuses on simplifying global structure, streamlining managerial structure and enhancing customer experience.
Project Summit is anticipated to deliver annual adjusted EBITDA benefits of $375 million exiting 2021. The total cost to implement the program is estimated to be approximately $450 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Iron Mountain has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Iron Mountain has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.