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 manufacturer Kimball International (NASDAQ:KBAL) fell 14% today after releasing earnings.

So what: During the fiscal second quarter, revenue fell 1% to $295 million and net income rose 31% to $4.2 million, or $0.11 per share. The increase in income is positive, but analysts were expecting $0.15 per share in earnings, so they missed the bar Wall Street set.  

Now what: To me, the drop in revenue is far more concerning than the earnings numbers. Investors should be keeping a close eye on deteriorating performance in the manufacturing sector, and that's exactly what is happening at Kimball. I don't see a reason to pay 15 times forward earnings estimates after revenue fell and profits came in below expectations this quarter. I need to see a much more impressive earnings report to get excited about this stock.

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Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw

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