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 shallow water offshore driller Hercules Offshore, (NASDAQ:HERO) fell as much as 11% in trading today after reporting earnings. Late in the day, shares had recovered slightly, and were down 7%.

So what: Second-quarter results were a bit below expectations, with revenue rising 15%, to $243 million, but income from continuing operations fell by more than half, to $6.6 million, or $0.04 per share. On an adjusted basis, the loss was $6.5 million, or $0.04 per share, $0.05 below estimates. 

Now what: Demand for domestic drilling rigs was lighter than a year ago, and that resulted in the declining results. But dayrates stayed high, with domestic revenue per day climbing from $84,328 a year ago to $108,237, a general trend we've seen in the shallow water market. Management expects demand to pick up later this year, and that's consistent with what we've heard from others in the industry. I wouldn't be a seller today and, given the discount the market is giving, this is a nice entry point for investors who have been eyeing the stock.

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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.