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What's in the Offing for Iron Mountain (IRM) in Q1 Earnings?
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Iron Mountain Incorporated (IRM - Free Report) is set to release first-quarter 2022 results on Apr 28 before the bell. While the company’s quarterly results are likely to display growth in revenues, funds from operations (FFO) per share might display a decline.
In the last reported quarter, this real estate investment trust (REIT) delivered a surprise of 4.23% in terms of normalized FFO per share. Both the service and storage segments delivered a solid performance in the quarter, while the data center business witnessed continued momentum.
Over the trailing four quarters, Iron Mountain surpassed the Zacks Consensus Estimate on each occasion, the average beat being 16.62%. The graph below depicts this surprise history:
Let’s see how things have shaped up before this announcement.
Factors to Note
Iron Mountain’s first-quarter results are likely to reflect a steady stream of recurring revenues from its core storage and record management businesses. This, along with the high box retention rate, is anticipated to have rendered storage rental revenue stability.
The consensus estimate for the same is pegged at $744 million for the first quarter, suggesting an improvement from the prior quarter’s $725 million and the year-ago period’s $708 million.
Moreover, IRM’s quarterly results are likely to display an improvement in core service revenues. The consensus estimate for first-quarter service revenues is pegged at $484 million. It indicates growth from the prior quarter’s $434 million and also calls for an increase from the year-ago quarter’s $374 million.
The growth of data, accelerations in cloud adoption and the boom in IT outsourcing demand have spurred the demand for data center spaces. New technologies, such as 5G and augmented reality, have been creating opportunities for edge deployment and data center operators.
The strong demand for connectivity, interconnection and colocation spaces is anticipated to have driven the data center leasing activity for Iron Mountain. Amid the favorable backdrop, the company continued its portfolio expansion and data center enhancement efforts in the quarter under review, which must have driven revenues from the global data center business.
For the first quarter, management projected total revenues to be more than $1.2 billion, EBITDA to be approximately $425 million and adjusted FFO to be more than $250 million.
Overall, total revenues for the first quarter are pegged at $1.23 billion, suggesting a year-over-year increase of 13.6%.
Iron Mountain’s activities in the first quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate of 70 cents for the quarterly FFO per share has been unrevised over the past month. Moreover, the figure suggests a year-over-year decline of 13.6%.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict an FFO beat for IRM this time. The right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of an FFO beat. However, that is not the case here.
Earnings ESP: Iron Mountain has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks like Public Storage (PSA - Free Report) , Host Hotels & Resorts, Inc. (HST - Free Report) and Cousins Properties Incorporated (CUZ - Free Report) that are worth considering from the REIT sector as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Public Storage, slated to release first-quarter earnings on May 3, has an Earnings ESP of +0.50% and a Zacks Rank of 2 (Buy) at present.
Host Hotels & Resorts, scheduled to report quarterly figures on May 4, has an Earnings ESP of +4.07% and a Zacks Rank of 1 currently.
Cousins Properties Incorporated, slated to report quarterly numbers on Apr 28, has an Earnings ESP of +0.50% and carries a Zacks Rank of 3.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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What's in the Offing for Iron Mountain (IRM) in Q1 Earnings?
Iron Mountain Incorporated (IRM - Free Report) is set to release first-quarter 2022 results on Apr 28 before the bell. While the company’s quarterly results are likely to display growth in revenues, funds from operations (FFO) per share might display a decline.
In the last reported quarter, this real estate investment trust (REIT) delivered a surprise of 4.23% in terms of normalized FFO per share. Both the service and storage segments delivered a solid performance in the quarter, while the data center business witnessed continued momentum.
Over the trailing four quarters, Iron Mountain surpassed the Zacks Consensus Estimate on each occasion, the average beat being 16.62%. The graph below depicts this surprise history:
Iron Mountain Incorporated Price and EPS Surprise
Iron Mountain Incorporated price-eps-surprise | Iron Mountain Incorporated Quote
Let’s see how things have shaped up before this announcement.
Factors to Note
Iron Mountain’s first-quarter results are likely to reflect a steady stream of recurring revenues from its core storage and record management businesses. This, along with the high box retention rate, is anticipated to have rendered storage rental revenue stability.
The consensus estimate for the same is pegged at $744 million for the first quarter, suggesting an improvement from the prior quarter’s $725 million and the year-ago period’s $708 million.
Moreover, IRM’s quarterly results are likely to display an improvement in core service revenues. The consensus estimate for first-quarter service revenues is pegged at $484 million. It indicates growth from the prior quarter’s $434 million and also calls for an increase from the year-ago quarter’s $374 million.
The growth of data, accelerations in cloud adoption and the boom in IT outsourcing demand have spurred the demand for data center spaces. New technologies, such as 5G and augmented reality, have been creating opportunities for edge deployment and data center operators.
The strong demand for connectivity, interconnection and colocation spaces is anticipated to have driven the data center leasing activity for Iron Mountain. Amid the favorable backdrop, the company continued its portfolio expansion and data center enhancement efforts in the quarter under review, which must have driven revenues from the global data center business.
For the first quarter, management projected total revenues to be more than $1.2 billion, EBITDA to be approximately $425 million and adjusted FFO to be more than $250 million.
Overall, total revenues for the first quarter are pegged at $1.23 billion, suggesting a year-over-year increase of 13.6%.
Iron Mountain’s activities in the first quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate of 70 cents for the quarterly FFO per share has been unrevised over the past month. Moreover, the figure suggests a year-over-year decline of 13.6%.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict an FFO beat for IRM this time. The right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of an FFO beat. However, that is not the case here.
Earnings ESP: Iron Mountain has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Iron Mountain currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Warrant a Look
Here are some stocks like Public Storage (PSA - Free Report) , Host Hotels & Resorts, Inc. (HST - Free Report) and Cousins Properties Incorporated (CUZ - Free Report) that are worth considering from the REIT sector as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Public Storage, slated to release first-quarter earnings on May 3, has an Earnings ESP of +0.50% and a Zacks Rank of 2 (Buy) at present.
Host Hotels & Resorts, scheduled to report quarterly figures on May 4, has an Earnings ESP of +4.07% and a Zacks Rank of 1 currently.
Cousins Properties Incorporated, slated to report quarterly numbers on Apr 28, has an Earnings ESP of +0.50% and carries a Zacks Rank of 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.