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 oil and gas producer Forest Oil (NYSE: FST) dropped 14% today after the company released earnings.

So what: Revenue dropped 24% in the third quarter to $118.2 million, which was short of the $132.3 million analysts expected. Net income did swing from a $458.6 million loss a year ago to a $2.2 million, or $0.02-per-share, profit, but again it was below the $0.09 in earnings analysts expected.  

Now what: Average sales volume was down 1% from a quarter ago because of lower volumes from the Texas panhandle. The company is selling that asset, so long-term that won't be a drag on results. What investors want to see is improved production from the Eagle Ford shale play, and despite a 67% jump in production sequentially, they still weren't buying. Until we see what the company expects to produce next year I'll take a cautious approach, particularly with profits at minuscule levels.

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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.