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 digital entertainment technologist Rovi (Nasdaq: ROVI) climbed 20% Wednesday after its quarterly results and full-year outlook easily topped Wall Street expectations.

So what: Fueled by a 25% surge in revenue, the company posted an adjusted first-quarter profit of $0.61 per share, versus the average analyst estimate of just $0.52 per share. Strong international demand, as well as the ongoing conversion from analog to digital, helped buoy Rovi's top line and, judging by the current stock price action, it's clear that Mr. Market expects those tailwinds to keep blowing.

Now what: Don't let this rally keep you from looking into the stock. With Rovi's recent acquisition of digital video software specialist Sonic Solutions starting to bear fruit, management also upped its full-year earnings outlook to a range of $2.25-$2.55 per share. Even with today's surge, Rovi shares are still at roughly the same level they were in December when I became bullish, so I've got to think there's still plenty of upside left.

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