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 II-VI (Nasdaq: IIVI) fell 12% today after the company announced earnings that missed expectations.

So what: Revenue rose 16% in the fourth quarter to $131.8 million but fell short of the $134.5 million analyst had expected. Diluted earnings per share were $0.34, falling $0.02 short of estimates.

Now what: Not only was the fourth quarter worse than expected, but first quarter guidance was also lower than analysts were looking for. II-VI is still expecting growth but not nearly as much as investors had hoped for in the near term. On the bright side, II-VI has $149 million in cash on hand versus just $18.7 million in long-term debt, and only a 17.2 P/E ratio after today’s drop, which leaves some value for investors.

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