The 10-second takeaway
For the quarter ended March 31 (Q1), Iron Mountain met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped.
Gross margins grew, operating margins improved, net margins shrank.
Iron Mountain recorded revenue of $746.5 million. The nine analysts polled by S&P Capital IQ predicted revenue of $749.6 million on the same basis. GAAP reported sales were 0.5% lower than the prior-year quarter's $750.3 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 $0.29. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share on the same basis. GAAP EPS of $0.32 for Q1 were 14% lower than the prior-year quarter's $0.37 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 57.8%, 40 basis points better than the prior-year quarter. Operating margin was 19.1%, 120 basis points better than the prior-year quarter. Net margin was 7.4%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $755.3 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $3.02 billion. The average EPS estimate is $1.31.
The stock has a four-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 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Iron Mountain a green thumbs-up, and nine 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 $34.86.
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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.