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 government service provider Engility Holdings (NYSE:EGL) jumped 20% today after the company reported earnings.

So what: Fourth-quarter revenue was $396 million, and adjusted earnings per share were $0.77, both ahead of the company's estimates. Analysts had set their earnings target at just $0.50, so the results were much better than Wall Street expected.  

Now what: Despite budget cutbacks, the company appears to be doing fairly well. Funded backlog grew to $856 million from $788 million last quarter, a strong indication of future results. Shares traded at just 10 times forward earnings, and if this strong performance continues, I think shares will move higher.

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