Iron Mountain's 3Q falls short of expectations
BOSTON (AP) — Iron Mountain Inc.'s third-quarter net income jumped more than 41 percent but fell short of market expectations as the information storage and management company was weighed down by lower paper prices and weaker foreign currencies.
The Boston-based company reported Wednesday that it earned $52.8 million, or 31 cents per share, for the period that ended Sept. 30. That compares with $37.3 million, or 19 cents per share, a year ago. After adjusting for costs for its planned conversion to a real estate investment trust and other special items, Iron Mountain made 34 cents per share in the recent period.
Revenue fell 3 percent to $748.1 million.
Analysts polled by FactSet expected 35 cents per share on revenue of $763.2 million.
CEO Richard Reese said the storage rental business, which makes up the bulk of its revenue, was stable during the quarter. But the company was hurt by lower recycled paper prices and the negative impact of currency exchange rates. He said it remains on-track to achieve its financial targets for the year.
Iron Mountain expects to earn $1.20 to $1.28 per share, on an adjusted basis, with revenue of $2.99 billion to $3.02 billion for the full year. Analysts estimated $1.32 per share for the year on revenue of $3.01 billion.
Iron Mountain shares rose 60 cents to $34.59 in morning trading. The stock is at the high end of its 52-week range of $27.10 to $37.70.