The leading benchmark indices notched all-time closing highs yesterday as the Federal Reserve held interest rates steady, in line with widespread expectations. Despite the federal funds rate level (in the range between 5.25% and 5.50%) being the highest in more than 23 years, the Fed kept the rates unchanged and pledged to cut the same thrice in 2024. This propelled the stock markets to record highs on optimism that the rate cuts will buoy the economic growth, which is projected to grow at a 2.1% annualized ...

Iron Mountain Incorporated (IRM) is well-poised to benefit from its resilient business model and expansion into the data center business. Its solid balance sheet position also bodes well.Last month, this Boston, MA-based real estate investment trust (REIT) reported fourth-quarter adjusted funds from operations (AFFO) per share of $1.11, surpassing the Zacks Consensus Estimate of $1.05. Moreover, the figure improved 8.8% on a year-over-year basis, attributable to solid performances in the storage and service ...

Iron Mountain Incorporated Conference Call Summary Company Overview - **Company**: Iron Mountain Incorporated (NYSE: IRM) - **Event**: Morgan Stanley Technology, Media & Telecom Conference - **Date**: March 5, 2024 - **Participants**: Barry Hytinen (CFO), Calvin Lam (Morgan Stanley) Key Points Industry and Company Performance - Iron Mountain has been one of the top 5 performing REITs over the last year, indicating strong market performance [4][4] - The company is experiencing significant growth in its data center business, which constitutes about 10% of total revenues and is expected to grow at least 20% this year [5][6] Data Center Business - Current operational capacity is over 250 megawatts, with 95% leased, and an additional 250 megawatts under construction, also 95% pre-leased [5][6] - Total potential build-out capacity is over 860 megawatts, up from 740 megawatts a year ago, reflecting ongoing expansion efforts [6][6] - The company anticipates new leasing of 100 megawatts or more this year, a 25% increase from previous guidance [6][6] - AI-related opportunities are driving demand, particularly from hyperscalers, leading to a robust pipeline of projects [6][6][10] Asset Life Cycle Management (ALM) - ALM is a growing segment with a total addressable market (TAM) of approximately $30 billion, with significant cross-selling opportunities from existing records management clients [24][25] - The company has grown its ALM business at a CAGR of over 30% since entering the market in 2017 [26][26] - Recent acquisitions, such as Regency Technologies, enhance Iron Mountain's capabilities in processing and recycling enterprise gear, allowing for better value capture [28][29] Financial Performance and Strategy - The data center segment has an EBITDA margin in the low to mid-40s percent, with expectations for improvement as efficiency increases [31][31] - The ALM segment operates on a revenue share model for hyperscale decommissioning, with margins in the teens to 20s, while enterprise services have margins in the 20s to 30s [33][34] - The company targets a leverage range of 4.5 to 5.5 times debt to EBITDA, currently operating at around 5 times, providing financial flexibility for growth [14][57] Growth and Investment Strategy - Iron Mountain plans to continue investing in data center development, funded by cash generated from its records management segment, which requires limited capital expenditure [13][36] - The company is focused on organic growth but remains open to strategic acquisitions if they present compelling opportunities [40][41] - Cross-selling initiatives are a key focus, with management compensation linked to cross-selling performance to drive revenue growth [20][55] Records Management Segment - The global Records Management segment grew about 9% last year, with expectations for continued growth driven by digital solutions and services [43][44] - The digital solutions business within Records Management is expected to grow at double-digit rates, fueled by increasing client demand for data digitization [44][45] Challenges and Market Dynamics - The company is aware of potential power constraints in certain markets but has not faced significant issues, thanks to proactive measures like building substations [72][73] - Competition in the data center market is healthy, with hyperscale clients increasingly favoring fewer, more reliable partners [68][69] Future Outlook - Iron Mountain aims for a revenue CAGR of 10% from 2021 to 2026, with current performance exceeding these targets [52][52] - The company is well-positioned to leverage AI and digital transformation trends to enhance service offerings and operational efficiency [10][55] This summary encapsulates the key insights from the conference call, highlighting Iron Mountain's strategic focus on growth, innovation, and operational efficiency across its business segments.

Iron Mountain Incorporated (NYSE:IRM) Morgan Stanley Technology, Media & Telecom Conference March 5, 2024 11:00 AM ET Company Participants Barry Hytinen - Chief Financial Officer Conference Call Participants Calvin Lam - Morgan Stanley Calvin Lam Maybe we'll begin now. So my name is Calvin Lam. I'm -- I run the communication services banking business at Morgan Stanley. I'm joined here on stage today by Barry Hytinen, the CFO of Iron Mountain; and Gill Tiltman, the Head of Investor Relations. So welcome, and ...

Shares of Iron Mountain (IRM -0.01%) soared 16.5% in February, according to data provided by S&P Global Market Intelligence. Driving up the real estate investment trust (REIT) was its strong fourth-quarter results and bullish outlook for 2024. Project Matterhorn is paying dividendsIron Mountain reported quarterly and full-year records for revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) last month. Revenue grew 7% for the year to nearly $5.5 billion, while adjust ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Sty ...

A professional works at a data center. gorodenkoff In investing, it's a simple fact of life that not all investments are going to pan out. That's why, to paraphrase investing legend, Peter Lynch, in this business, you're good if you're right six times out of 10. As I noted in my Broadcom (AVGO) article last month, I have adapted my investing strategy to cut losers before big losses stack up. Just as importantly, I also have remained steadfast in holding on to my winners for the most part. Dividend Channel O ...

Iron Mountain Incorporated (IRM) reported fourth-quarter adjusted funds from operations (AFFO) per share of $1.11 cents, beating the Zacks Consensus Estimate of $1.05.Iron Mountain’s results reflect solid performances in the storage and service segments and the data-center business. However, higher interest expenses in the quarter created a headwind. The company issued its outlook for 2024.Quarterly total revenues of $1.42 billion lagged the Zacks Consensus Estimate of $1.44 billion.On a year-over-year basi ...

Iron Mountain (IRM) reported $1.42 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 11%. EPS of $1.11 for the same period compares to $0.43 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.44 billion, representing a surprise of -1.50%. The company delivered an EPS surprise of +5.71%, with the consensus EPS estimate being $1.05.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...