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 Avid Technology (Nasdaq: AVID) rose as much as 18% today after the digital media company announced earnings.

So what: Adjusted earnings of $0.37 per share in the quarter were much better than the $0.08 analysts had expected, and the company reported a narrow loss without adjustments. Revenues were up 11.8% as demand for the company's products picked up despite slowing services business.

Now what: The improving fundamentals are encouraging, but the company is still reporting a loss despite the large adjusted earnings number. I would like to see a little more growth and a move into GAAP net income before getting too excited about this stock. I'll leave today's move alone, but keep an eye on continued improvement in the future.

Interested in more info on Avid Technology? Add it to your watchlist.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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