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 gaming machine manufacturer Multimedia Games (NASDAQ:MGAM) surged 19% today after its quarterly results and guidance easily topped Wall Street expectations.

So what: Multimedia's second-quarter results -- EPS growth of 29% on an 18% jump in revenue -- and full-year outlook were so strong that analysts have no choice but to raise their growth estimates yet again. In fact, operating margins spiked to 29.9% from just 16.9 in the year-ago period, reinforcing optimism about its overall product mix and competitive position going forward.

Now what: Management now sees full-year 2013 EPS of $0.98-$1.02, up significantly from its prior view of $0.79-$0.84 and well ahead of Wall Street's estimate of $0.83. "Our success in the first half of fiscal 2013 has positioned the company for continued progress in the second half of the year as the awareness and availability of our products in a larger portion of the domestic marketplace continues to expand," said CEO Patrick Ramsey. Of course, with the stock now up a whopping 110% over the past year and trading at about 3.5 times sales, much of that optimism might already be baked into the valuation.    

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