Data centre REIT Iron Mountain posts record Q2 revenue, raises FY forecast
Overview
Iron Mountain Q2 rev grows 11.6% yr/yr to record $1.7 bln
Adjusted EBITDA beats analyst expectations, driven by growth in key segments
Co reports net loss of $43 mln due to Fx impact on intercompany balances
Outlook
Iron Mountain raises full-year revenue guidance to $6.79 bln-$6.94 bln
Company projects full-year adjusted EBITDA of $2.52 bln-$2.57 bln
Iron Mountain expects AFFO per share of $5.04-$5.13
Company cites strong momentum in growth businesses for guidance increase
Result Drivers
DATA CENTER GROWTH - Data center, digital, and asset lifecycle management businesses grew over 30%, driving revenue growth
FX IMPACT - Net loss of $43 mln attributed to changes in exchange rates on intercompany balances
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Miss | $0.48 | $0.5 (6 Analysts) |
Q2 EPS | -$0.15 | ||
Q2 Net Income | -$43 mln | ||
Q2 Adjusted EBITDA | Beat | $628 mln | $622.40 mln (6 Analysts) |
Q2 Adjusted EBITDA Margin | 36.7% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Iron Mountain Inc is $123.00, about 22.3% above its August 5 closing price of $95.55
The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 45 three months ago
Press Release:
