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 Freescale Semiconductor (NYSE: FSL) dropped by as much as 14% today after the company reported earnings and guidance fell short.

So what: Revenue added up to $1.03 billion, resulting in adjusted earnings per share of $0.07. That top-line figure was right on target, while the bottom line beat the Street's best guesses of $0.05 per share. The real culprit was in the company's third-quarter guidance.

Now what: Third-quarter sales are predicted to range from $955 million to just over $1 billion, which is below expectations. Additionally, gross margin is expected to decrease by roughly 75 basis points sequentially. Freshly minted CEO Gregg Lowe continues to work on reducing costs to get back in the black, and will be conducting a strategic review over the following weeks.

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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.