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 CARBO Ceramics (NYSE:CRR) jumped as much as 19% today after the company released earnings.

So what: Fourth-quarter revenue was up 7.1% from a year ago, to $164.5 million, beating the $162.2 million estimate from analysts. The bottom line was also strong, with net income up 5.2% to $20.9 million, or $0.90 per share, nine cents ahead of estimates.  

Now what: The quarter was looked on so positively because drilling activity was fairly slow in 2013, so any sales growth was good for CARBO Ceramics. The company also seems to be doing well selling its value proposition versus Chinese competitors.

Drilling in the U.S. is expected to pick up in 2014 because natural gas prices are now favorable for the industry, which should lead to an increase in demand, at least in the first quarter. The trends are in CARBO's favor right now, which is great for the stock; just watch for changes, because we know demand can drop quickly.

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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.

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