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: VanceInfo Technologies (NYSE: VIT) dropped 12% in intraday trading today after reporting inline first-quarter earnings.

So what: Non-GAAP EPS of $0.20 grew 10% year over year and met the consensus estimate. Management expects second-quarter non-GAAP EPS of $0.22, up 10% year over year and inline with the consensus estimate.

Now what: It's a rare quarter that VIT doesn't beat the consensus estimate and GAAP EPS growth is slowing. Although revenue growth is strong at about 29% year over year, EPS is suffering from a rising share count, lower government subsidies, wage inflation and revenue mix shift to China (which is affected by the Chinese New Year holiday in the first quarter). Without clear indications EPS growth will significantly reaccelerate, it's hard to justify VIT's non-GAAP P/E ratio of 34 times and GAAP P/E ratio of 37 times.

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