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 fragrance-maker Inter Parfums (NASDAQ:IPAR) were smelling sweeter to investors this morning, climbing as much as 13% in early trading on a strong earnings report before giving back all those gains.

So what: Revenue and EPS topped estimates easily, but sales still declined 3% to $166 million due to currency translation. EPS dropped a penny from a year ago to $0.33, but was well ahead of estimates of $0.18. The Europe-focused company saw sales slide by 4% across the Atlantic, though U.S. revenues improved by 4%.

Now what: The drop following this morning's spike is a bit puzzling, though Mario Draghi's comments yesterday about continuing weakness expected in Europe could offer an explanation. Investors may simply have macro concerns about the region, and the fragrance-maker derives the vast majority of its sales from Europe. Inter Parfums will also be losing control of the Burberry fragrance as of March 31, 2013. Based on these factors, analysts are projecting a 33% drop in revenue next year, though these worries seem exaggerated. Inter Parfums still has a number of strong brands in its arsenal, including Montblanc fragrance, sales of which rose 67% this quarter. Management will provide 2013 guidance on Nov. 21, which should provide a clearer picture of its prospects.

Don't miss the next update on Inter Parfums.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.