Mirion Technologies (MIR) stock continued its downward spiral, plummeting 10.02% in pre-market trading on Friday. This sharp decline follows a significant 10.43% drop on Thursday, despite the company reporting better-than-expected second-quarter results and raising its full-year guidance.

The continued sell-off comes as a surprise to many, given Mirion's strong financial performance. In its Q2 earnings report, the company announced revenue of $222.9 million, surpassing analyst estimates of $216.2 million. Mirion's net income reached $8.5 million, with adjusted earnings per share rising to $0.11, beating the expected $0.10. Furthermore, the company raised its 2025 revenue growth guidance to 7%-9% from the previous 5%-7% and now forecasts adjusted EPS of $0.48-$0.52 per share.

Despite these positive developments, investors seem to be focusing on valuation concerns. The stock was recently trading at 42 times the next 12-month earnings, up from a P/E of 30 three months ago. This high valuation, combined with the stock's 28.5% year-to-date gain prior to the earnings release, may have prompted investors to take profits. Additionally, Mirion's announcement of its $81 million acquisition of Certrec, a leader in regulatory compliance for the nuclear industry, might have raised concerns about short-term financial impacts. The market's reaction suggests that even with positive developments, Mirion's current valuation may be seen as stretched, overshadowing the company's improved performance and outlook.