Key Takeaways IRM is expected to post Q2 revenue growth and higher AFFO per share versus last year.Data center leasing is likely to boost performance amid strong connectivity and colocation demand.Higher interest expenses may have weighed on overall quarterly results.Iron Mountain Incorporated (IRM) is slated to release second-quarter 2025 results on Aug. 6, before the opening bell. The quarterly results are likely to display year-over-year growth in revenues and adjusted funds from operations (AFFO) per sh ...

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]