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 ultra-deepwater drilling company Ocean Rig UDW (NASDAQ:ORIG) jumped 12% today after reporting earnings.

So what: Revenue jumped 15% in the quarter to $328.5 million, driven by an average operating efficiency of 98.4%. The company also took deliver of Ocean Rig Mylos, which began production this week. Higher expenses from the rig helped push net income to a loss of $12.2 million, or $0.09 per share, but on an adjusted basis earnings were $0.30 per share, nine cents ahead of estimates.  

Now what: The ultra-deepwater market is booming and Ocean Rig is a pure-play in the sector. I'd expect earnings to continue to grow long-term, driven by three new rigs being delivered. My only concern is a management team that doesn't have a long history of shareholder value creation. If earnings continue to rise on strong utilization this stock has a lot of room left to run.

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.