The 10-second takeaway
For the quarter ended June 30 (Q2), Iron Mountain met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share contracted significantly.
Gross margins dropped, operating margins expanded, net margins contracted.
Iron Mountain booked revenue of $752.2 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $761.2 million on the same basis. GAAP reported sales were 0.8% lower than the prior-year quarter's $758.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.35. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.22 for Q2 were 82% lower than the prior-year quarter's $1.24 per share. (The prior-year quarter included $0.91 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.1%, 90 basis points worse than the prior-year quarter. Operating margin was 21.0%, 140 basis points better than the prior-year quarter. Net margin was 5.1%, 2,820 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $763.7 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $3.01 billion. The average EPS estimate is $1.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 279 members out of 305 rating the stock outperform, and 26 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 outperform, with an average price target of $38.57.
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