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 Conversant Inc. (NASDAQ:CNVR) fell more than 11% early Wednesday, and then settled to close down around 7% after the company turned in solid first-quarter results but followed with disappointing guidance.

So what: Formerly known as ValueClick, Conversant's revenue increased 8% year over year to $145.9 million. That translated to 3% growth in adjusted net income and $0.67 per diluted share. Analysts, on average, were looking for adjusted earnings of only $0.39 per share on sales of $141.6 million.

For the current quarter, however, Conversant expects revenue in the range of $135 million to $140 million, with adjusted net income per share of $0.34 to $0.35. By contrast, analysts were modeling second-quarter earnings of $0.39 per share on sales of $139.07 million.

Now what: Conversant CFO John Pitstick elaborated: "Our second-quarter guidance implies fairly consistent revenue growth with the first quarter and reflects the significant investments we are making in our people and products. The midpoint of our earnings guidance for Q2 reflects approximately $10 million of additional cash operating expenses as compared to the year ago period."

That's fair enough, but I can't blame the market for bidding down shares as increased operating expenses eat into the bottom line. For now, until the market has time to fully digest today's news and adjust expectations for Conversant accordingly, I think investors would be wise to hold off on using the drop as a buying opportunity.

Warren Buffett just bought nearly 9 million shares of this company
In the meantime, there are plenty of other promising stocks out there for patient investors. To be sure, imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour. (That's almost as much as the average American makes in a year!) And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click here to discover more about this industry-leading stock, and join Buffett in his quest for a veritable landslide of profits!

Steve Symington 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.

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