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What: Shares of industrial product manufacturer Nordson (NASDAQ:NDSN) dropped as much as 10% today after the company reported fiscal second-quarter earnings.

So what: Revenue rose 21%, to $382.1 million, in the quarter, and net income was up 5%, to $54.6 million, or $0.84 per share. Both figures were in line with expectations, but the company said fiscal third-quarter earnings would be $1 to $1.09 per share, and analysts were expecting $1.15. Revenue guidance of $404 million to $419 million was also short of the $428.6 million estimate. 

Now what: Organic sales growth is only expected to grow by about 2%, so Nordson is relying on acquisitions for most of its growth. This level of growth just isn't enough to keep the stock at current valuations and, with a forward P/E of 15 even before analysts adjust for guidance, I think it's still too expensive. I'd sell the news today, and wait for Nordson to either fall to a better value, or pick up organic growth in the future before buying in.

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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.