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 Cabela's (NYSE: CAB) surged as much as 15% in early trading after reporting better than expected fourth quarter profit on expanding gross margins.

So what: Revenue improved 8.4% to $934 million. Adjusted profits improved 16.9% to $0.86 a share. Analysts were expecting $907.68 million and $0.79 a share, respectively, from this outdoor equipment retailer.

Now what: Cabela's organic performance is what most impressed investors. Same-store sales rose 7.3%. Gross margins expanded to 39.9% from 38.6% in last year's first quarter, suggestive of efficiency, pricing power, or perhaps both. Either way, Cabela's is a healthier business today than it was a year ago.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. 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 also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.