Shares of Iron Mountain Drop on Disappointing Q4 Results (IRM)

Shares of Iron Mountain Drop on Disappointing Q4 Results (IRM)


Shares of information management service provider, Iron Mountain Incorporated(IRM) dropped on Thursday morning following the company’s disappointing earnings results and lowered FY2013 outlook.

The Boston, MA based company reported fourth quarter earnings of $25.49 million, or 14 cents per share, down -20% from $32.06 million, or 18 cents per share last year. Excluding special items, earnings were 20 cents per share, down from 33 cents per share last year. Analysts expected to see earnings of 25 cents per share.

Revenue for the quarter rose 2.2% to $758.47 million, from $741.84 million last year. Analysts estimated $751.04 million in revenue.

Earnings declined from higher interest expenses and costs related to the company’s conversion to a real estate investment trust (REIT), which will be finalized on January 1, 2014. There was an upside to revenue for the quarter due to storage rental increases.

Looking ahead, the company expects to see FY2013 earnings to be in the range of $1.13 to $1.24 per share, that estimate is down from IRM’s prior outlook range of $1.18 to $1.28 per share. Revenue is expected to be between $3.02 billion and $3.1 billion.

Analysts are expecting FY2013 earnings of $1.23 per share, and revenue of $3.06 billion.

Iron Mountain shares were down -$1.98, or -5.66% during premarket trading Thursday. The stock has increased 11% in the past year.

The Bottom Line
Shares of Iron Mountain Incorporated(IRM) have a 3.09% yield, based on Wednesday’s closing price of $34.98.

Iron Mountain Incorporated(IRM) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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