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 environmental services company Nuverra Environmental Solutions (NYSE: NES) dropped 31% yesterday after reporting earnings.

So what: Third-quarter revenue jumped 75%, to $162.6 million, but net loss exploded from $9.3 million, to $193.7 million, on asset writedowns. One-time charges of $233.1 million for the impairment of goodwill and long-lived assets was a driver of the larger-than-expected loss. 

Management also announced a plan to divest its Thermo Fluids business, which it paid $245 million for just last year. The carrying value of that asset was written down to $145 million, a huge blow so quick after the acquisition.

Now what: There's really nothing positive to report for Nuverra Environmental in the quarter. End markets aren't improving as expected, and divesting from a recent acquisition is a quick reversal of strategy. With losses mounting, and management appearing lost in the current market, I'll happily watch from the sidelines rather than buy in today.

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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of and has options on Nuverra Environmental Solutions. 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.