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 video conferencing specialist Polycom (Nasdaq: PLCM) surged 16% on Tuesday after the company's fourth-quarter results easily topped Wall Street expectations.

So what: Polycom shares have been crushed over the past six months on weak revenue growth, but its market-thumping quarter -- adjusted EPS of $0.41 versus the consensus of just $0.29 -- is forcing analysts to quickly increase their growth expectations. Sales were particularly strong in emerging markets, suggesting that fears over big market share losses to gorilla rival Cisco Systems are a tad overblown.

Now what: Don't let today's rally keep you from looking into the stock. "Polycom's cloud, mobility, and software-driven infrastructure strategy is beginning to yield and we look forward to another year of solid growth in 2012," said CEO Andrew Miller. More importantly, with a stock that's still off about 35% from its 52-week high and a balance sheet with zero debt, Polycom's downside seems limited.

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

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