Specialized Technology Stocks Q1 Teardown: Mirion (NYSE:MIR) Vs The Rest

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialized technology stocks fared in Q1, starting with Mirion (NYSE:MIR).

Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest.

The 8 specialized technology stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.

Luckily, specialized technology stocks have performed well with share prices up 25.5% on average since the latest earnings results.

Mirion (NYSE:MIR)

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Mirion reported revenues of $202 million, up 4.9% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

“We delivered a strong start to the year, with year-over-year revenue growth and adjusted free cash flow generation,” commented Mirion’s Chairman and Chief Executive Officer Thomas Logan.

Interestingly, the stock is up 38.4% since reporting and currently trades at $21.55.

Is now the time to buy Mirion? Access our full analysis of the earnings results here, it’s free.

Best Q1: Arlo Technologies (NYSE:ARLO)

Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE:ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.

Arlo Technologies reported revenues of $119.1 million, down 4.1% year on year, outperforming analysts’ expectations by 0.6%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 62% since reporting. It currently trades at $17.27.

Is now the time to buy Arlo Technologies? Access our full analysis of the earnings results here, it’s free.

Zebra (NASDAQ:ZBRA)

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ:ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Zebra reported revenues of $1.31 billion, up 11.3% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter meeting analysts’ expectations.

Interestingly, the stock is up 27.1% since the results and currently trades at $309.50.

Read our full analysis of Zebra’s results here.

Napco (NASDAQ:NSSC)

Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ:NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.

Napco reported revenues of $43.96 million, down 10.8% year on year. This result beat analysts’ expectations by 1.9%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ EPS estimates.

Napco had the slowest revenue growth among its peers. The stock is up 25.5% since reporting and currently trades at $29.85.

Read our full, actionable report on Napco here, it’s free.

Crane NXT (NYSE:CXT)

Born from a corporate transformation completed in 2023, Crane NXT (NYSE:CXT) provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.

Crane NXT reported revenues of $330.3 million, up 5.3% year on year. This number topped analysts’ expectations by 3.9%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.

Crane NXT achieved the biggest analyst estimates beat among its peers. The stock is up 16.6% since reporting and currently trades at $55.58.

Read our full, actionable report on Crane NXT here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.