Yahoo Finance Iron Mountain's (IRM) Q1 AFFO Beat Estimates, Revenues Rise Y/Y
Iron Mountain Incorporated IRM reported first-quarter 2024 adjusted funds from operations (AFFO) per share of $1.10, beating the Zacks Consensus Estimate of $1.05.
Shares of the company have lost nearly 2.5% in the initial hours of the trading session today, reflecting broader market concerns.
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 acted as a dampener. The company reaffirmed its outlook for 2024.
Quarterly total revenues of $1.48 billion outpaced the Zacks Consensus Estimate of $1.46 billion.
On a year-over-year basis, AFFO per share and total revenues increased 8.9% and 12.4%, respectively.
According to William L. Meaney, president and CEO of Iron Mountain, “We are pleased to report a strong start to 2024, resulting in all-time record Revenue and a record first quarter Adjusted EBITDA. Our consistent strong performance is evidence that our strategy, through Project Matterhorn, is working.”
Behind the Headlines
Storage rental revenues were $884.8 million in the first quarter, up 9.2% year over year. We had estimated quarterly storage rental revenues to be $899.8 million.
Service revenues increased 17.4% from the prior-year quarter to $592 million.
The Global Data Center business reported revenues of $143.9 million in the first quarter, rising 28.2% year over year. Our estimate was pegged at $143.1 million.
The adjusted EBITDA rose 12.6% year over year to $518.9 million. The adjusted EBITDA margin remained unchanged at 37% year over year.
However, interest expenses flared up 19.9% year over year to $164.5 million in the quarter. We projected the metric to be $158.2 million.
Balance-Sheet Position
IRM exited the first quarter with $191.7 million of cash and cash equivalents, down from $222.8 million as of Dec 31, 2023.
Dividend Update
Concurrently, IRM announced a quarterly cash dividend of 65 cents per share for the second quarter of 2024. The dividend will be paid out on Jul 5, 2024, to its shareholders on record as of Jun 17, 2024.
2024 Guidance
Iron Mountain reaffirmed its guidance for 2024.
It expects AFFO per share of $4.39-$4.51. The Zacks Consensus Estimate for the same is pegged at $4.42, which lies 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.
Iron Mountain Incorporated Price, Consensus and EPS Surprise
Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote
Performance of Other REITs
American Tower Corporation AMT reported first-quarter 2024 AFFO per share, attributable to AMT common stockholders, of $2.79, beating the Zacks Consensus Estimate of $2.55 and climbed 9.8% year over year.
Results reflected better-than-anticipated revenues, aided by revenue growth across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5.4% and total tenant billings growth of 6.3%. AMT has also raised its 2024 outlook.
SBA Communications Corporation SBAC reported first-quarter 2024 AFFO per share of $3.29, which lagged the Zacks Consensus Estimate of $3.30. Nonetheless, the figure reflects a rise of 5.1% from the prior-year quarter.
Results were affected by lower site development revenues. However, SBAC witnessed an improvement in site leasing revenues, which supported the results to some extent. It continues to benefit from the addition of sites to its portfolio. SBAC lowered its 2024 outlook.
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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