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 media networking specialist Entropic Communications (Nasdaq: ENTR) fell more than 11% below last night's closing price after an unexciting earnings report.

So what: Entropic beat both the analyst revenue target and the earnings target. In addition, next-quarter guidance on both counts was stronger than the analyst forecasts.

Now what: It doesn't seem fair to punish Entropic so harshly, especially with a strong outlook on the near future. The company has little competition in its core operations, which is to make networking chips for MoCA-compliant media networks such as multi-room DVR systems marketed by Verizon (NYSE: VZ) under the FiOS brand. Digital media is the future, and Entropic looks likely to play an important part in that market evolution.

Interested in more info on Entropic Communications? Add it to your watchlist by clicking here.

Editor's note: This article has been updated to reflect that Entropic did not miss analyst revenue estimates. The Fool regrets the error.  

Fool contributor Anders Bylund holds no position in any of the companies discussed here. 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 is investors writing for investors.