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 lottery-solution provider Scientific Games (Nasdaq: SGMS) fell 15% after the company reported fourth-quarter earnings.

So what: Revenue grew 13% in the quarter, to $239.1 million, topping estimates by a small margin. But earnings per share excluding special items were just $0.07, and analysts had expected $0.10 in earnings.  

Now what: The company's operations are improving, just not as fast as investors would like. The company still lost $8.5 million before adjustments, and until it can swing to a consistent profit I'm not jumping on this one. Growth just isn't strong enough and I don't see the company as having a strong enough competitive advantage to demand a premium without demonstrating it can make a profit.  

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