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 AMC Networks Inc (NASDAQ:AMCX) were getting left on the cutting room floor today, falling as much as 18%, and finishing down 8% on a subpar first-quarter earnings report.

So what: The cable parent saw sales jump in the quarter, increasing 37%, to $524.6 million, ahead of estimates at $507.5 million, but expenses grew even faster as the company spends to find future hit shows to replace series such as Breaking Bad and the outgoing Mad Men. As a results, earnings improved, but only slightly, from $0.96 per share to $1.04 per share, missing estimates at $1.14. CEO Josh Sapan noted the strong performance of The Walking Dead and the company's international division, which saw revenue spike 635%, to $76.6 million, thanks to its acquisition last October of Chellomedia.    

Now what: The entertainment business is a fickle one, as viewers are often loyal to shows rather than networks, and companies are only as successful as the programs they're currently airing. Shares of AMC hit a 52-week low on today's report, but the company seems to be taking steps in the right direction with the Chellomedia acquisition, which enables its expansion into Europe and other parts of the world. Given the robust sales growth in the past quarter, we could see a better result on the bottom line the next time that tthe company reports. 

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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends AMC Networks. 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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