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 SFX Entertainment (NASDAQ:SFXE) were getting passed over by investors today, falling as much as 21% after reporting first-quarter earnings this morning.

So what: The organizer of electronic music festivals said revenue in the quarter more than tripled, to $33.3 million, though costs ballooned, as well, leading it to a net loss of $0.73 per share. Those results badly missed estimates at $63.2 million in sales and a loss of $0.17 per share; however, SFX's business is highly seasonal, only two analysts follow the company. In addition, this is its first first-quarter as a publicly traded company, so estimates are not as meaningful as they would normally be. 

Now what: CEO Robert Sillerman noted that, "festival attendance more than doubled year-over-year," with half the growth coming from new festivals and comparable festival sales growth of 10%. The company will increase its festival count by more than 30%, to 76 this year, and sees continued growth opportunities in the years ahead through new festivals, and with marketing partnerships. With the majority of festivals slated for the back half of the year, I'd give SFX a few more quarters to prove itself before jumping ship. Investors seemed to feel the same way as the stock rallied to finish down just 2%.

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Jeremy Bowman 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.