Iron Mountain to Post Q3 Earnings: What's in the Cards for the Stock?

Core Viewpoint - Iron Mountain Incorporated (IRM) is expected to report third-quarter 2024 results on November 6, with anticipated year-over-year growth in revenues and funds from operations (FFO) per share [1] Financial Performance - In the last reported quarter, IRM delivered a surprise of 1.89% in adjusted FFO per share, driven by strong performances in storage, service segments, and data center business, although higher interest expenses negatively impacted results [2] - Over the trailing four quarters, IRM's FFO per share exceeded the Zacks Consensus Estimate three times, with an average beat of 2.84% [3] Revenue Growth - The third quarter is likely to show gains from core storage and records management operations, with the storage rental segment expected to grow due to effective revenue management and steady volume growth [3] - Demand for traditional services and strong market needs for connectivity and colocation space are likely to have positively impacted service revenue and data center leasing activity [4] Projections - The Zacks Consensus Estimate for storage rental revenues is $928.99 million, up from $858.66 million year-over-year, while service revenues are estimated at $626.76 million, an increase from $529.52 million [6] - Total quarterly revenues are projected at $1.56 billion, reflecting a 12.12% increase from the prior-year quarter [7] - The consensus estimate for quarterly AFFO per share is $1.11, indicating a 12.12% growth from the previous year, while IRM expects AFFO per share of $1.10 [8] Interest Expenses - Interest expenses for the third quarter are estimated to rise by 16.5% year-over-year, which may pose challenges for financing new acquisitions or developments [7][5] Earnings Prediction - The current Earnings ESP for IRM is -0.54%, with a Zacks Rank of 2, indicating that the model does not predict a surprise in FFO per share for this quarter [9][10]