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 software company iGATE (Nasdaq: IGTE) climbed as high as 10% on Friday after the company's first-quarter profit easily topped Wall Street expectations.

So what: iGATE's first-quarter earnings beat was so wide -- adjusted EPS of $0.38 versus the consensus of $0.32 -- that analysts have no choice but to raise their growth expectations on the stock. In fact, profits jumped 35% even as several project delays weighed on revenue and margins, suggesting that the company's earnings power is stronger than Wall Street had thought.

Now what: Don't let today's pop keep you from looking into the stock. "We expect our revenue growth to be back on track over the next couple of quarters creating a back loaded year," forecasted CEO Phaneesh Murthy. More important, with the stock still trading at a cheapish forward P/E of 11, buying into that optimism won't come at a huge price.  

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