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Iron Mountain (IRM -7.28%) concluded its 2024 fiscal year on a somewhat disappointing note regarding its performance metrics. On Thursday morning, the company released its fourth-quarter and full-year results for 2024, which did not meet market expectations. As a result, investors reacted negatively, leading to a decline of over 7% in its share price on that day.
Performance Overview
Iron Mountain, a leader in document and records management, reported revenue of $1.58 billion for the fourth quarter. This figure marks an 11% increase compared to the same period last year, setting a new quarterly revenue record for the company.
On the profitability front, Iron Mountain achieved a net profit of approximately $106 million, a significant turnaround from the $34 million loss it experienced a year earlier. When adjusted, the earnings per share rose to $0.50.
However, these improvements fell slightly short of analyst expectations, which projected revenues of $1.6 billion and adjusted earnings of $0.51 per share.
In the earnings announcement, CEO William Meaney highlighted that the quarter showcased “strength across each of our business segments.” Notably, storage rental revenue increased by 8% to $942 million, and service revenue saw a notable 17% increase to $639 million.
Future Projections
Looking ahead, Iron Mountain provided its guidance for 2025, projecting revenue between $6.65 billion and $6.80 billion. The midpoint of this forecast suggests a growth of approximately 9% compared to its 2024 revenue. Additionally, the company anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach between $2.48 billion and $2.53 billion, indicating around 12% growth at the midpoint.
It’s common for companies to face market backlash for not meeting analyst projections, even by a small margin. In this instance, despite the slight miss, Iron Mountain’s financial growth appears commendable, and its future guidance remains optimistic.
Source
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