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: Higher One (NYSE: ONE) dropped 12% in intraday trading today after the company reported fourth-quarter results.

So what: Fourth-quarter non-GAAP EPS of $0.17 grew 55% year over year and soundly beat the consensus estimate of $0.13. Non-GAAP EPS guidance was in line with consensus estimates, with management forecasting first-quarter non-GAAP EPS of $0.23 to $0.25 (consensus was $0.23) and 2011 non-GAAP EPS of $0.68 to $0.74 (consensus was $0.72).

Now what: The fourth-quarter upside did not result in strong guidance, effectively lowering 2011 non-GAAP EPS growth expectations to 13% to 23%. In addition, 2011 GAAP EPS guidance of $0.39 to $0.56 compares unfavorably with 2010 results of $0.44. This recent IPO appears richly valued at forward P/E ratios of 23.3 times to 25.4 times non-GAAP EPS and 30.8 times to 44.2 times GAAP EPS guidance.

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Fool contributor Cindy Johnson does not own shares of any company named above. 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.