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Iron Mountain Increases Sales but Misses Revenue Estimate

Wednesday - 5/1/2013, 2:00am  ET

Iron Mountain reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Iron Mountain missed slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share shrank. GAAP earnings per share shrank significantly.

Margins shrank across the board.

Revenue details
Iron Mountain booked revenue of $747.0 million. The nine analysts polled by S&P Capital IQ predicted sales of $761.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.27. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. Non-GAAP EPS of $0.27 for Q1 were 6.9% lower than the prior-year quarter's $0.29 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.) GAAP EPS of $0.10 for Q1 were 69% lower than the prior-year quarter's $0.32 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.0%, 80 basis points worse than the prior-year quarter. Operating margin was 16.4%, 270 basis points worse than the prior-year quarter. Net margin was 2.6%, 480 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $766.8 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $3.07 billion. The average EPS estimate is $1.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 279 members out of 304 rating the stock outperform, and 25 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Iron Mountain a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Iron Mountain is outperform, with an average price target of $40.50.

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This article was originally published as Iron Mountain Increases Sales but Misses Revenue Estimateon Fool.com

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