The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Iron Mountain met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, net margins grew.
Iron Mountain logged revenue of $741.8 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $747.0 million on the same basis. GAAP reported sales were 5.9% lower than the prior-year quarter's $788.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.33. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.29 per share on the same basis. GAAP EPS of $0.19 for Q4 were 19% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.5%, 330 basis points worse than the prior-year quarter. Operating margin was 20.7%, 130 basis points better than the prior-year quarter. Net margin was 4.3%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $763.5 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $3.05 billion. The average EPS estimate is $1.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 272 members out of 296 rating the stock outperform, and 24 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Iron Mountain a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Iron Mountain is hold, with an average price target of $33.89.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.