Iron Mountain Q2: Data Storage Demand, Dividend Boost & More

Iron Mountain Inc IRM reported second-quarter financial results Thursday before the bell, following which the shares started soaring. Here’s a look at the key metrics from the quarter.

Q2 Earnings Details: The company reported that the second quarter adjusted earnings per share was 42 cents, missing the consensus of 44 cents. Quarterly revenue of $1.53 billion, beating the street view of $1.51 billion.

Total reported revenues (excluding the impact of foreign currency exchange) increased 13.8% compared to the prior year. This was driven by an 11.5% increase in storage rental revenue and a 17.3% increase in service revenue.

On a constant currency basis, adjusted EBITDA increased by 15.1% in the quarter Y/Y, driven by the increase in Global Records Information Management (RIM), Asset Lifecycle Management (ALM), and data center.

AFFO was $320.9 million for the quarter, compared with $287.1 million last year, an increase of 11.8% driven by improved adjusted EBITDA. AFFO per share was $1.08, higher by 10.2% Y/Y.

Dividend: On August 1, 2024, Iron Mountain’s Board declared a quarterly cash dividend of $0.715 per share for the third quarter, representing an increase of 10%. 

CEO William L. Meaney: “We are grateful to our team who continue to drive toward our Project Matterhorn growth targets, including top tier growth in AFFO, which enabled us to increase the dividend by 10%.”

Outlook: Iron Mountain affirmed full-year 2024 guidance and now expects towards the upper end of the guidance range for revenues of $6 billion–$6.15 billion versus the $6.11 billion estimate and AFFO per share of $4.39–$4.51.

Iron Mountain stock gained over 74% in the last 12 months.

Price Action: IRM shares are trading up by 4.44% to $107.12 at last check Thursday.

Photo by Shuttershock

Read Next:

• Bank Of England Reduces 16-Year High Interest Rates In Divided Decision As Inflation Hits 2%