Read Larry Connors' blog – Short Term Trading Strategies
Effective tax rate was impacted by net foreign currency gains and the associated tax expense and several discrete tax items, which decreased earnings by $0.03 per share for the quarter. Excluding items, the company reported earnings of $0.24 per share for the quarter.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
In its second quarter, net income attributable to Iron Mountain was $88 million, or $0.43 per share, up from $36 million or $0.18 per share a year ago, driven by higher operating income and reduced interest expense.
Total revenues for the third quarter declined 2% to $764.88 million from $784.34 million in the comparable quarter a year ago. The company recorded a storage revenue internal growth of 7%, which more than offset the expected weakness in service revenue growth. Analysts expected the company to report revenues of $774.56 million for the quarter.
The year-over-year weakening of major foreign currencies including the British pound and the Canadian dollar against the U.S. dollar reduced the revenue growth rate by 4% compared to the year-ago quarter, the company noted.
Storage revenues increased to $433.07 million from $421.67 million in the previous year. According to the company, solid storage revenue internal growth in the North American Physical and International Physical business segments offset economic pressures on digital revenues and activity-based service revenues related to the handling and transportation of items in storage and secure shredding.
Service revenues fell to $331.82 million from $362.66 million in the preceding year. The company noted that complementary service revenues decreased year-over-year, mainly due to lower recycled paper prices and softness in the more discretionary revenues, such as project revenues and fulfillment services. In its immediately preceding second quarter, the company's total consolidated revenues declined to $746 million from $769 million last year.
Operating income for the recent quarter was $142.65 million, up from $136.34 million in the prior year. Gross profit margin during the third quarter improved to 58% from 55.1% in the third quarter of 2008.
Total operating expenses for the quarter declined to $622.24 million from $647.99 million in the corresponding quarter a year ago. Selling, general and administrative costs were $218 million, flat to the prior year period on a reported basis.
During the third quarter, the company said it maintained tight control over capital spending and continued to improve its capital efficiency and has now lowered its 2009 capital spending outlook for total capital expenditures to be about $360 million for the year.
For the nine-month period, the company's net income increased to $159.62 million or $0.78 per share from $80.68 million or $0.40 per share in the same period last year. Total revenues for the period declined to $2.23 billion from $2.30 billion in the year earlier.
Bob Brennan, president and chief executive officer said, "We have a strong foundation upon which we are building long-term growth platforms. Our disciplined management approach continues to drive solid profit performance through improved execution and is serving us particularly well in this challenging economy. We are on track to deliver solid full year results in 2009."
Looking ahead to the fourth quarter, the company expects to report revenue in the range of $766 million - $786 million. Analysts currently anticipate the company to report revenue of $761.82 million for the quarter. The company said the recent weakening of the U.S. dollar against major currencies is expected to increase fourth quarter reported results by about 1%.
For the full year 2009, the company revised its revenue guidance to a range of $3 billion - $3.02 billion, from the previous range of $2.98 billion - $3.04 billion. Analysts currently anticipate the company to report revenue of $3.01 billion for the full year. Further, the company noted that the significant year-over-year strengthening of the U.S. dollar against the major currencies is expected to lower 2009 full year reported results by about 4% to 5%. IRM closed Wednesday's regular trading at $26.39 on the NYSE.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
