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 CTS (NYSE:CTS), an electronic component and sensor manufacturer, dipped as much as 11% after the company reported fourth-quarter earnings results that failed to impress.

So what: For the quarter, CTS reported a 4% decline in total revenue to $138.3 million and adjusted EPS of $0.18 (there were quite a few special one-time gains and losses). Comparatively, Wall Street had been forecasting EPS of $0.24 on $142.8 million in sales, meaning CTS missed the mark on both the top and bottom lines. The company's components and sensors segment showed modest sales gains of 7%, but it was more than offset by a 15% revenue decline in the electronic manufacturing services segment. If that wasn't enough, CTS' 2013 forecast for $0.73-$0.78 in EPS is shy of the $0.84 that Wall Street had been projecting.

Now what: On a positive note, CTS did note that the shortfall on EPS can be blamed to a higher tax rate, and a delay in the implementation of a Chinese high-technology incentive tax credit. This may at least signify little problem in the underlying business. Sales estimates also call for 12%-15% growth in 2013, although management was clear that the going remains rough. Perhaps the biggest question mark for CTS is how well it'll transition with a new CEO at the helm. For now, there are enough question marks to keep me on the sideline, but it's nonetheless an interesting company worth adding to my watchlist.

Craving more input? Start by adding CTS to your free and personalized Watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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