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Iron Mountain (IRM) Q1 FFO Misses Estimates, Revenues Up Y/Y

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Have you been eager to see how Iron Mountain Incorporated (IRM - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Boston, MA – based real estate investment trust’s (REIT) earnings release this morning:

A FFO Miss

Iron Mountain came out with normalized funds from operations ("FFO") per share of 49 cents, missing the Zacks Consensus Estimate of 50 cents.

Higher operating expenses were primarily responsible for this FFO miss.

How Was the Earnings Surprise Trend?

Iron Mountain doesn’t have a decent surprise history. Before posting a FFO miss in Q1, over the preceding four quarters, the company missed the FFO per share estimates in three occasions and beat in the other, resulting in an average negative surprise of 2.23%. This is depicted in the graph below:


Revenue Came Higher Than Expected

Iron Mountain’s revenues amounted to $1.04 billion, which beat the Zacks Consensus Estimate of nearly $1.03 billion. Moreover, it compared favorably with the year-ago number of $938.9 million.

Key Developments to Note:

Iron Mountain maintained its guidance for 2018. On a constant dollar basis, the company expects revenue in the band of $4,160-$4,260 million, denoting increase of 7-9% and adjusted EBITDA in the range of $1,435-$1,485 million, indicating growth of 12-16%. Moreover, adjusted FFO is anticipated to be in the range of $805-$865 million, denoting increase of 5-13%.

What Zacks Rank Says

Iron Mountain currently has a Zacks Rank #2 (Buy). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Check back later for our full write up on this IRM earnings report!

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