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 government service provider Engility Holdings (NYSE:EGL) jumped 20% today after the company reported earnings.

So what: Fourth-quarter revenue was $396 million, and adjusted earnings per share were $0.77, both ahead of the company's estimates. Analysts had set their earnings target at just $0.50, so the results were much better than Wall Street expected.  

Now what: Despite budget cutbacks, the company appears to be doing fairly well. Funded backlog grew to $856 million from $788 million last quarter, a strong indication of future results. Shares traded at just 10 times forward earnings, and if this strong performance continues, I think shares will move higher.

Interested in more info on Engility Holdings? Add it to your watchlist by clicking here.

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.