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 farm equipment retailer Titan Machinery (Nasdaq: TITN) fell 22% today after the company released earnings.

So what: Revenue was up 32% in the fiscal second quarter to $410.1 million, and the company made a profit of $5.2 million, or $0.25 per share. Analysts had expected $401.9 million in revenue and earnings per share of $0.43.

What really hit investors was the company's reduced earnings guidance for the full year, which management now expects to be between $2.10 and $2.30, down $0.45 from its previous guidance.

Now what: This year's drought in the Midwest is expected to hurt sales, as farmers are expected to preserve cash in 2013. This isn't good for Titan Machinery, but the reaction from the market today is way overdone, in my opinion. Shares now trade at less than 10 times full-year earnings, and I think this will be a short-term blip in performance for the company, providing long-term upside for the stock.

Interested in more info on Titan Machinery? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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