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Iron Mountain Q3 AFFO Beat, Storage Rental & Service Revenues Rise

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Iron Mountain Incorporated’s (IRM - Free Report) 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 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.

Performance of Other REITs

Equinix Inc.’s (EQIX - Free Report) third-quarter 2024 AFFO per share of $9.05 surpassed the Zacks Consensus Estimate of $8.70. The figure improved 10.5% from the prior-year quarter.

Results displayed steady growth in colocation and inter-connection revenues on the back of strong demand for digital infrastructure. During the quarter, EQIX’s total interconnections reached 478,000, rising 4% year over year. The company also revised its outlook for 2024.

American Tower Corporation (AMT - Free Report) reported its third-quarter 2024 AFFO per share, attributable to AMT common stockholders, of $2.64 beat the Zacks Consensus Estimate of $2.54 and climbed 2.3% year over year.

Results reflected a year-over-year rise in revenues, aided by revenue growth across its service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 5.2% and total tenant billings growth of 5.9%.

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.


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