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 oil and gas producer Approach Resources (Nasdaq: AREX) fell as much as 10% in early trading after the company announced earnings.

So what: Total production increased 39% in the first quarter and revenue grew 52% to $30.6 million. But adjusted net income was only $3.5 million, or $0.10 per share, and analysts had expected earnings of $0.19 per share.

Now what: The expectations are getting high for oil and gas companies right now, and those that aren't beginning to turn a significant profit are being punished. Shares still trade at 18 times forward earnings estimates, and after this miss I wonder whether shares will look even more expensive. I'm not buying the move today and would like to see the company meet expectations before getting excited about this energy producer.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.