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 electrical equipment maker AZZ (NYSE: AZZ) dropped as much as 16% today after the company reported earnings.

So what: Revenue was up 44%, to $183.2 million, but net income fell 9%, to $14.5 million, or $0.57 per share. Analysts expected $197.6 million in revenue and $0.63 in earnings, so the quarter fell well short of expectations. 

Now what: The electrical equipment market is changing as new energy sources emerge, and utilities struggle to adapt. That creates both opportunity and challenges in the industry, something AZZ has to adapt to. The jump in revenue from acquisitions is strong, but the company's drop in profit is concerning, and I'd take a cautious view of the stock until we see consistent earnings growth and more growth in electrical demand.

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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of AZZ. 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.