What Happened?
Shares of radiation safety company Mirion (NYSE:MIR) fell 7.6% in the morning session after the company reported underwhelming guidance as it lowered its full-year organic revenue growth forecast.
The revised guidance for fiscal year 2025 was reduced to a range of 4.5% to 6.0%, down from the previous expectation of 5.0% to 7.0%. Mirion cited several reasons for the lowered outlook, including reduced expectations in its labs and research market, lower demand from China unrelated to nuclear power, and a delayed defense order in Europe. The negative forecast overshadowed the simultaneous announcement that Mirion had agreed to acquire Paragon Energy Solutions for $585 million in cash. While the acquisition was expected to add to earnings in the first full year and create about $10 million in cost and commercial benefits by the fifth year, investors focused on the near-term headwinds highlighted by the guidance cut.
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What Is The Market Telling Us
Mirion’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 3.1% as the Consumer Price Index (CPI) report bolstered expectations for a Federal Reserve interest rate cut despite showing persistent inflation.
The August CPI data, a key measure of inflation, showed prices rose 2.9% annually, slightly more than economists expected. While inflation remains above the Federal Reserve's 2% target, investors were focusing on other signs of a cooling economy, particularly a weakening labor market.
As a result, the market widely anticipated that the Fed would cut interest rates at its September meeting to support the economy. Investors priced in multiple rate cuts by year-end, which boosted market sentiment and sent Treasury yields lower.
Mirion is up 32.8% since the beginning of the year, and at $22.47 per share, it is trading close to its 52-week high of $24.60 from September 2025. Investors who bought $1,000 worth of Mirion’s shares 5 years ago would now be looking at an investment worth $2,102.
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