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 Tornier (Nasdaq: TRNX), a medical device company focused on joint replacement and soft tissue repair, fell as much as 12% this morning after it reported its first-quarter earnings results.

So what: For the quarter, Tornier reported a 7.2% increase in sales driven by its sixth consecutive quarter of double-digit growth in its extremity products segment. Unfortunately for shareholders, that strength didn't translate into bottom-line growth as the company reported breakeven EPS. Wall Street, on the other hand, had been looking for Tornier to earn $0.02 for the quarter. In addition, Tornier's full-year revenue guidance appears to be ever-so-slightly light. The company is constantly adjusting for currency fluctuations in its report, but the true number to focus on is its expected sales range of $272 million-$278 million. The current analyst consensus is for Tornier to bring in $283 million.

Now what: I do like the medical devices sector, but I'm having a hard time wrapping my head around Tornier's valuation. At more than 100 times forward earnings and 35 times cash flow, it's very difficult to see the value in a company that's having difficulty remaining cash flow positive. Until Tornier can make sizable market share gains or really deliver to the bottom line, I'm more than happy waiting on the sidelines.

Craving more input? Start by adding Tornier to your free and personalized watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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