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 shoemaker Crocs (Nasdaq: CROX) fell 10% today after the company disappointed investors with its earnings outlook.

So what: Revenue reached $271.8 million, just barely topping estimates. Earnings per share were $0.32 on a non-GAAP basis, $0.06 higher than estimates. So why did the stock drop? The company outlook for the second quarter was for $335 million to $340 million in revenue and $0.61 to $0.63 per share in earnings. Analysts had expected $352.7 million in revenue and $0.65 in earnings per share next quarter.

Now what: Revenue did increase 20% and net income jumped 32%, so the sell-off today is overdone in my eyes. The company is now trading with a trailing P/E ratio of 16, a great value considering the growth rate. I have my reservations about Crocs long-term, but I don't see this earnings report as a reason to sell shares.

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