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: HSN (Nasdaq: HSNI) shares dropped more than 10% in heavy trading, following the company's third-quarter earnings report.

So what: Best known for its HSN television network, the catalog-, online-, and TV-based product marketer, disappointed investors with earnings that were negatively affected by higher shipping costs. Despite revenue growth of 10% compared to a year ago, the company's net profit fell 10%.

Now what: The company expects shipping costs to remain an issues in the short term, so watch for the company to find other ways to cut costs. HSN stock has nearly doubled over the last year, so it's not surprising to see investor disappointment.

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Fool contributor April Taylor does not own shares of the companies 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.