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: Shanda Games (Nasdaq: GAME) popped 15% in intraday trading today after fourth-quarter EPS of $0.20 beat the consensus estimate of $0.17.

So what: Fourth-quarter results were at the high end of guidance. Sequentially, EPS grew 27%, helped by new products (revenue grew 5%) and a 140% increase in government financial incentives.

Now what: Management said growth is accelerating internationally (outside China) and it has built a solid foundation for 2011, but did not offer guidance. Compared to the year-ago quarter, revenue fell 14%, operating income fell 33%, and net income fell 12%.  Investors may want to wait for evidence the sequential improvement was more than normal seasonal strength and assess the sustainability of EPS-boosting government financial incentives.

Interested in more info on Shanda Games? Add it to your watchlist here.

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.