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: Dialysis products manufacturer NxStage Medical (Nasdaq: NXTM) is being flushed down the drain today, with shares down as much as 17%, after the company reported disappointing second-quarter results.

So what: For the quarter, NxStage recorded a 10% increase in revenue to a record $59 million, with losses shrinking to $0.09 from a loss of $0.10 in the year-ago quarter. Home revenue provided the biggest boost with sales jumping 14%. Although these results met Wall Street's expectations, NxStage's guidance left a lot to be desired. Its third-quarter guidance of $60 million-$61 million in sales and a loss of $0.06-$0.08 per share is lower than the analyst's current projections for $61.93 million in revenue and a loss of just $0.05.

Now what: I like the long-term prospect for device makers given a growing population, a wider scope of people being insured through the Affordable Care Act, and continued improvements in treatment technology. One thing I'm not often willing to wait around for is a medical-device maker that can't turn a profit. NxStage is awfully pricey for not being profitable, and its growth rate leaves a lot to be desired. Personally, I'd pass, even at these depressed levels.

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