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 chemical maker Ferro Corporation (NYSE: FOE) jumped 10% after announcing a terrible earnings report. As Vince Lombardi would say, "What the heck is going on out there?"

So what: Revenue rose 3% to $546 million but fell well below estimates of $572.8 million. Earnings per share were also disappointing at $0.23 per share, four cents below estimates.

Now what: How can your stock go up when results fall so short of estimates? Well, estimates from analysts and expectations from investors don't always align, especially in the case of smaller companies like Ferro. There are only five analysts covering the company and they may not be updating expectations as quickly as investors do. So considering the stock is trading between $6 and $7, there may still be plenty of value in this company that's improving profitability.

Interested in more info on Ferro? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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