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Iron Mountain revenue narrowly beats estimates, shares rise

Iron Mountain narrowly beat expectations for second-quarter revenue on Thursday, helped by steady demand for its data centers and IT management service.

The results follow positive earnings from peer Digital Realty and show that spending on data centers has remained resilient even in an uncertain economy as more businesses move to the cloud.

Iron Mountain posted a record revenue of $1.36 billion for the June quarter, compared with Wall Street estimates of $1.35 billion, according to Refinitiv data.

Its adjusted funds from operations, a key measure of cash flow, rose to 94 cents per share, from 93 cents per share a year earlier.

Iron Mountain reiterated its annual forecasts.

“The resilience of our business model and the success of Project Matterhorn are fueling our sustained growth trajectory,” said Chief Executive Officer William Meaney.

The company last year unveiled a plan, called Project Matterhorn, to increase its annual revenue to more than $7 billion by 2026 from $5.10 billion in 2022 by attracting more business for its data centers and IT management service.

Iron Mountain’s shares were down 1.6% in low volumes on Thursday. They have risen by more than a fourth so far this year. Reuters

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