Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ResMed (NYSE: RMD) had a rough day today falling 14% after the company released earnings.

So what: Third-quarter revenue grew 12% to $314.8 million but fell well short of the $327.9 million in revenue analysts were expecting. On the bottom line, earnings fell 11% to $0.33 per share, $0.02 below estimates.

Now what: A weak dollar relative to the euro and Australian dollar was blamed for some of the shortfall, but it looks like expectations were much too high. Declining profit is never a good sign, and I would be cautious jumping on shares right now. The stock's price/earnings multiple of 19 times trailing earnings will look very expensive if the lower earnings trend continues.

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