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 Guidewire Software (NYSE:GWRE) dropped by as much as 14% today after reporting fiscal first quarter earnings, but the plunge was temporary, and shares recovered throughout the day.

So what: Total revenue came in at $63.3 million, which was better than the $60.5 million that investors were expecting. The non-GAAP earnings per share of $0.11 similarly bested the consensus estimate of $0.10 per share, but guidance left something to be desired.

Now what: Next quarter should see sales in the range of $62.5 million to $65.5 million, which was worse than expected. That should result in a net loss of $0.01 per share or a profit of $0.03 per share, while the market thought $0.08 per share was in order. The full-year figures were more within range of what investors were hoping for, and they've clearly gotten over their initial disappointment, as shares are enjoying modest gains now after the morning plunge.

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