Iron Mountain to Post Q1 Earnings: What's in the Cards for the Stock?

Core Viewpoint - Iron Mountain Incorporated (IRM) is expected to report year-over-year growth in revenues and adjusted funds from operations (AFFO) per share for the first quarter of 2025, with results to be released on May 1 [1] Group 1: Financial Performance - In the last reported quarter, Iron Mountain delivered a surprise of 3.33% in AFFO per share, driven by strong performances in storage, service segments, and data center business, although higher interest expenses slightly impacted performance [2] - Over the trailing four quarters, Iron Mountain's AFFO per share has consistently surpassed the Zacks Consensus Estimate, with an average beat of 2.95% [3] - The consensus estimate for quarterly total revenues is pegged at $1.60 billion, indicating an increase of 8.27% from the prior-year quarter's reported figure [7] Group 2: Revenue Projections - The Zacks Consensus Estimate for storage rental revenues is projected at $947.8 million, up from $884.8 million reported in the year-ago period [6] - The consensus estimate for service revenues is pegged at $650.1 million, an increase from $592 million reported in the prior-year quarter [6] - The estimate for the global data center segment is $176 million, up from $143.94 million reported in the year-ago period [6] Group 3: Challenges and Market Dynamics - The company's earnings may be affected by shifts in data storage technologies, impacting physical storage volume and demand for record handling [3] - High costs related to sales components and administrative expenses due to international expansion and increased interest expenses have posed challenges [4] - Despite these challenges, strong demand for connectivity and colocation space is likely to have boosted data center leasing activity, enhancing the performance of Iron Mountain's global data center segment [4] Group 4: Earnings Predictions - Interest expenses for the first quarter are estimated to rise by 16.2% year-over-year [5] - The Zacks Consensus Estimate for AFFO per share has remained unchanged at $1.16 over the past three months, indicating significant growth from the year-ago quarter's reported number [5] - The current Earnings ESP for Iron Mountain is -0.15%, and it carries a Zacks Rank of 5 (Strong Sell), suggesting limited potential for a surprise in AFFO per share this season [9]