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 Arctic Cat (NASDAQ:ACAT) are down nearly 10% today, despite posting record-breaking earnings for its second fiscal quarter. Investors focused on the company's full-year earnings guidance, which came in below expectations, despite getting a boost in the latest report.

So what: Arctic Cat's quarterly revenue of $229.0 million was below the consensus estimate of $232.9 million, but EPS outperformed the $1.79 consensus by a penny. That brought full-year EPS guidance up by $0.10 on both high and low ends, to a new range of $2.65 to $2.75. Unfortunately, analysts had sky-high expectations of $2.86 in EPS for the full year, so even this solid progress wasn't enough to please the market.

Now what: Arctic Cat's EPS has been heading straight upwards since the waning days of 2010. The company's current full-year guidance will push that number even higher, to an improvement of 54% to 60% over fiscal 2012's EPS. It's possible that we'll see that fall if consumers decide to tighten their belts, but present economic trends have not indicated any such belt-tightening in store domestically. Arctic Cat's current P/E is hardly outlandish, and its fundamentals remain sound, so curious investors may want to take a closer look after today's drop.

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Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more news and insights.

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