Iron Mountain Inc.IRM , a leading provider of data protection and information management services, is set to release its third-quarter 2016 results on Nov 1. Last quarter, the company delivered a negative earnings surprise of 11.32%. It has posted an average negative earnings surprise of 2.24% over the past four quarters.
Let's see how things are shaping up for this announcement.
Factors to Consider
Iron Mountain's diversified revenue base remains a positive. In addition, a strong product portfolio, increasing market share, an aggressive acquisition strategy and a promising international business are the other growth catalysts.
In Aug 2016, the company announced the buyout of information management operations of Santa Fe Group A/S in 10 regions in both Europe and Asia. The deal values the operations at nearly $30.2 million. This apart, in the last quarter, the company had declared that the synergies from the Recall acquisition are being achieved faster than expected. Management said that it expects to achieve over 80% of the synergies expected from Recall by 2017, this year itself. It also reiterated its long-term goals. Moreover, the company's entry into the data center market could be another growth driver.
This apart, a highly-leveraged balance sheet, volatile currency environment and competition from the likes of Cintas Corporation CTAS and others remain overhangs.
Earnings Whispers
Our proven model does not conclusively show that Iron Mountain is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below
Zacks ESP : Iron Mountain's Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 58 cents.
Zacks Rank : Iron Mountain's Zacks Rank #2 when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
IRON MOUNTAIN Price and EPS Surprise
IRON MOUNTAIN Price and EPS Surprise | IRON MOUNTAIN Quote
Stocks to Consider
Here are a couple of stocks that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
NN Inc. NNBR has an Earnings ESP of +4.35% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Mercadolibre, Inc. MELI with an Earnings ESP of +8.24% and a Zacks Rank #1
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IRON MOUNTAIN (IRM): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
