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 RPC (NYSE: RES) fell as much as 10% today after the company released earnings.

So what: Normally when a stock falls this far, it misses expectations by a mile, but RPC was actually better than analysts expected in the second quarter. Revenue of $443 million beat estimates of $410.5 million, and earnings per share were in line with expectations at $0.50.

Now what: So why the fuss today? Higher revenue and profit in line with expectations means margins were lower than expected -- that’s what investors are focused on today. Management pointed to higher costs for materials and maintenance costs for the lower margins. Before we panic too much here, I will point out that earnings were in line with expectations, and the stock is only trading at 10.6 times forward earnings estimates, so this price dip looks like a buying opportunity to me.

Interested in more info on RPC? Add it to your watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.