Iron Mountain to Report Q1 Earnings: A Beat in the Cards?

We expect Iron Mountain Inc IRM to beat expectations when it reports first-quarter 2017 earnings results on Apr 27.        

Why a Likely Positive Surprise?

Our proven model shows that Iron Mountain is likely to beat earnings because it has the right combination of two key ingredients.

Zacks ESP: Iron Mountain’s Earnings ESP stands at +1.96%. This is because the company’s Most Accurate estimate is 52 cents while the Zacks Consensus Estimate is pegged lower at 51 cents. A favourable ESP serves as a meaningful and leading indicator of a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Iron Mountain currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 have a significantly higher chance of beating earnings estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.

The combination of Iron Mountain’s Zacks Rank #3 and +1.96% ESP makes us reasonably optimistic of an earnings beat.

Iron Mountain Incorporated Price and EPS Surprise

Iron Mountain Incorporated Price and EPS Surprise | Iron Mountain Incorporated Quote

What is Driving the Better-than-Expected Earnings?

We note that Iron Mountain has mixed record of earnings surprises in the trailing four quarters, with an average surprise of 3.28%. Moreover, the stock has outperformed the Zacks REIT and Equity Trust - Other industry on a year-to-date basis. While the industry gained 4.7%, the stock returned 11.9%.

Iron Mountain’s diversified revenue base remains a positive. In addition, a strong product portfolio and increasing market share are growth catalysts. Moreover, the company’s entry into the data center market could be another positive.

Furthermore, the company has an aggressive acquisition strategy to supplement organic growth in storage revenues. Iron Mountain is also likely to benefit from its expansion to 45 countries.

Other Stocks to Consider

Here are some companies you may consider as our proven model shows they too have the right combination of elements to post an earnings beat this quarter:

Angie's List ANGI has an Earnings ESP of +40% and a Zacks Rank #1.

Square SQ, also sporting a Zacks Rank #1, has an Earnings ESP of +12.50%.

TIM Participacoes TSU, with an Earnings ESP of +11.11% and a Zacks Rank #1.

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