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 patent company RPX (NASDAQ:RPXC) dropped as much as 10% today after reporting second-quarter earnings.

So what: Revenue rose 4% to $57.5 million, which was in line with analysts' estimates. On the bottom line, net income reached $10.7 million and on a non-GAAP basis, earnings per share were $0.26, $0.02 ahead of estimates.  

Now what: If results are better than estimates, why is the stock down? A big reason is full-year earnings guidance, which was $50 million to $53 million. At best that will meet expectations of $0.99, and after an earnings beat like this quarter, you would expect the company to raise expectations. I don't think this is a big deal, and the market's reaction is probably overdone, but watch for earnings momentum in the second half of the year to determine what direction the stock will head long-term.

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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends RPX. 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.