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 snack maker Diamond Foods (NASDAQ:DMND) fell 10% today after reporting earnings.

So what: Fiscal second quarter revenue fell 16% to $220.8 million, which was short of the $239.2 million analysts expected. On the bottom line, net income was $10.1 million, or $0.43 per share, but when you pull out one-time items the profit falls to $0.05 per share, a penny below expectations.  

Now what: The most concerning part of the report was the company's huge drop in revenue. Shares are trading at 21 times forward earnings, a price that's steep even for a company that's growing revenue at a good clip. I don't see a reason to buy shares here and would wait to re-evaluate until the company turns revenue around.

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Fool contributor Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.