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 titanium dioxide maker Kronos Worldwide (NYSE: KRO) fell 12% today after releasing earnings.

So what: Sales were up 34% from a year ago to $561.3 million and net income more than doubled in the first quarter to $136.9 million, or $1.18 per share, on higher selling prices and volumes. Both numbers easily outpaced estimates, but management did say that higher raw materials costs are expected to come through in 2012.

Now what: I'm not seeing a whole lot of bad news here as the higher raw material costs are being offset by higher selling prices. The company is off to a good start in 2012, and even without adjusting for today's earnings beat, shares are trading at just 7.5 times 2012 earnings estimates. I think the market is pricing in a nice value, and shares have further to run higher after this earnings report.

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